Why is the Megaport share price lifting 6% on Thursday?

Man pointing at a blue rising share price graph.Man pointing at a blue rising share price graph.

The Megaport Ltd (ASX: MP1) share price is surging into the green early in the session on Thursday morning.

At the time of writing, the Megaport share price is 6% higher at $9.21 apiece, extending gains to 75% for the past month for shareholders.

In wide market moves, the S&P/ASX All Technology index (ASX: XTX) is also clicking higher on Thursday and trades 2% higher on the day.

What’s up with the Megaport share price?

Investors have bid up the Megaport share price today on no news. Noteworthy however is that tech shares have also caught a bid and are the leading sector on the ASX today.

The tech benchmark has curled up from yearly lows on 20 June and has pushed back 20% higher over the past month.

As seen on the chart below, both the tech index and the Megaport share price have tracked each other with striking similarity these past 3 months. It’s the same on all other time frames.

TradingView Chart

Hence, whilst there’s been nothing market sensitive out of Megaport’s camp today, with the sector climbing back past previous highs, it stands to reason this strength has carried over to individual names.

Brokers are also constructive on the share, with Goldman Sachs giving it a buy in a note last month. The firm said it “remain[s] positive on the product leadership of the company, and the rapidly growing NaaS/SD-WAN addressable markets”.

In the last 12 months, the Megaport share price has slipped more than 46% into the red, or 50% this year to date.

The post Why is the Megaport share price lifting 6% on Thursday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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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