The S&P/ASX 200 Index (ASX: XJO) is having a positive, if bouncy, day of trading so far this Friday. At the time of writing, the ASX 200 is up a healthy 0.35% at over 7,270 points. But the Zip Co Ltd (ASX: Z1P) share price is doing one better.
Zip shares are having a strong day today thus far, having risen a healthy 4.9% at the time of writing to $1.65 a share. That puts this buy now, pay later (BNPL) company’s gains since Tuesday afternoon at a very pleasing 17% or so.
So why is the Zip share price having such a strong run this week?
Zip share price surges on tech rally
Well, the first thing to note is that the market is having a strong run itself. Fresh from the tumult of the past couple of weeks, ASX shares seem to have found their footing more recently. Since 8 March, the ASX 200 is itself up by a robust 4.2%.
Due to Zip’s reputation as a growth and tech share, its share price moves are often a magnification of what the broader market is doing. In addition, as a tech share, Zip often takes its cues from what is happening on the US markets, particularly the tech-heavy Nasdaq Index. And the Nasdaq has had a couple of strong days recently as well. Since Monday alone, it has gained more than 8%.
The US Federal Reserve’s interest rate decision this week also appears to have been cheered on by investors in this space. That might be why we are seeing Zip shoot up this week in such a decisive manner. It’s not just Zip either. Other ASX tech shares such as Block Inc CDI (ASX: SQ2), Xero Limited (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) have also rocked in recent days.
But unfortunately, this move for Zip shares hasn’t been enough to make up for the company’s rather dreadful share price performance of late. Even after today’s gains, Zip remains down more than 61% in 2022 so far. It also remains down by more than 80% over the past year.
At the current Zip share price, this ASX 200 BNPL share has a market capitalisation of $1.11 billion.
The post Up 17% in 3 days! Why is the Zip (ASX:Z1P) share price surging? appeared first on The Motley Fool Australia.
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More reading
- ASX 200 (ASX:XJO) midday update: Energy shares rise on oil price jump, Megaport sinks
- These 3 ASX 200 shares are topping the volume charts this Thursday
- Why Ampol, EML, Vulcan, and Zip shares are zooming higher
- Why the Zip share price is surging 12% higher today
- ASX 200 (ASX:XJO) midday update: Block and Zip shoot higher, Ampol’s acquisition boost
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc., WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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