Blast off! Why is the Zip share price zooming 3% on Friday?

A happy girl in a yellow playsuit with a zip gives the thumbs upA happy girl in a yellow playsuit with a zip gives the thumbs up

The Zip Co Ltd (ASX: ZIP) share price is ending the week on a high after yesterday’s catastrophic session.

And it’s not alone in its gains. The tech-adjacent stock is leaping alongside many of the S&P/ASX 200 Index (ASX: XJO)’s technology shares.

At the time of writing, the Zip share price is trading at 97 cents, 3.74% higher than its previous close.

For context, the ASX 200 is also in the green, gaining 1.35%.

Let’s take a look at what might be going on with the buy now, pay later (BNPL) provider’s shares.

Zip share price takes off on Friday

Zip shares are back on the horse after tumbling to a multi-year low of 91.5 cents in intraday trade yesterday.

And the BNPL stock was joined in the red by most ASX 200 tech shares. In fact, the S&P/ASX 200 Information Technology Index (ASX: XIJ) fell a whopping 8.7% on Thursday amid news of inflation overseas.

But today’s a new day. The tech sector is up 4.89% on Friday with none of its constituents recording a loss.

The Block Inc (ASX: SQ2) share price is leading the pack. It’s currently up 12.5%, clawing back some of yesterday’s 17.6% tumble.

Despite today’s partial rebound, the Zip share price is 77% lower than it was at the start of 2022. It has also dumped 85% since this time last year.  

The post Blast off! Why is the Zip share price zooming 3% on Friday? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Zip right now?

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Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zip wasn’t one of them.

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*Returns as of January 13th 2022

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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