The Zip share price is rocketing 14% today. What’s going on?

Four people gather around laptop and cheerFour people gather around laptop and cheer

The Zip Co Ltd (ASX: ZIP) share price is soaring today, up 13.6% in early afternoon trading.

Zip shares closed yesterday trading for 44 cents and are currently swapping hands for 50 cents.

Certainly, that’s welcome news for Zip shareholders, who’ve watched the stock crash since hitting all-time highs in February last year.

ASX BNPL shares lifting off

It’s not just the Zip share price surging today. The wider ASX buy now, pay later (BNPL) sector is enjoying a strong showing.

The Sezzle Inc (ASX: SZL) share price is up 11.3% at the time of writing. And industry giant Block Inc (ASX: SQ2), which acquired Afterpay in January, is up 10.4%.

This as the All Ordinaries Index (ASX: XAO) is up a more modest 0.7%.

As the best performing of the BNPL shares today, the Zip share price could be getting a boost from its release earlier this week reporting that the company is “well placed to respond to and offset” rising interest rates.

The company also reported on its relatively strong financial position, with CEO Larry Diamond adding, “We have been clear that in response to current market conditions our strategic priorities are to focus on our core business, both products and regions, and accelerate the group’s path to profitability.”

Another factor that’s lifting the Zip share price and the wider ASX BNPL sector is the strong performance of the dual-listed Block on US markets yesterday (overnight Aussie time). Block closed up 10.9% on the NYSE.

The catalyst for that lift looks to be news breaking that Cathie Wood’s ARK Innovation fund acquired some 82,000 Block shares this week for almost $5 million.

Zip share price snapshot

Despite today’s big lift, the Zip share price remains down 88% in 2022. That compares to a year-to-date loss of 15% posted by the All Ordinaries.

Zip shares are also down 94% since this time last year and 43% over the past month.

The post The Zip share price is rocketing 14% today. What’s going on? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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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