The Zip Co Ltd (ASX: ZIP) share price is suffering another blow this morning alongside many of the company’s tech and buy now, pay later (BNPL) peers.
The trouble follows a poor Friday session for many of Zip’s international BNPL peers and comes amid rumours a major player in the space could see its value tumble.
At the time of writing, the Zip share price is 49.75 cents, 6.13% lower than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is also in the red today, falling 0.51%.
Let’s take a closer look at what might be dragging the ASX BNPL share lower on Monday.
What’s weighing on the Zip share price?
The Zip share price is sliding for a third consecutive session today. Meanwhile, the tech sector is also in the red.
The S&P/ASX 200 Information Technology Index (ASX: XIJ) is currently down 1.9%. Looking to the broader tech sector, the S&P/ASX All Technology Index (ASX: XTX) is also struggling, falling 2.47%.
That’s despite the NASDAQ Composite posting a slight gain during Friday’s session overseas.
Though, the most recent session in the United States saw ASX payments-focused tech stock Block Inc (ASX: SQ2)’s New York-based listing fall 2.33% and BNPL favourite Affirm Holdings Inc (NASDAQ: AFRM) slump 1.14%.
Additionally, unlisted BNPL giant Klarna is reportedly gearing up to announce a capital raise that could see its valuation tumble 86% over two years.
The BNPL giant is looking to conduct a US$800 million capital raise at a pre-money valuation of less than US$6 billion, Sky News reports. The fintech was said to be worth US$45.6 billion two years ago.
Including its recent downturn, the Zip share price is around 88% lower than it was at the start of this year.
The post Down 6%, why Monday is not a fun day for the Zip share price appeared first on The Motley Fool Australia.
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More reading
- Why did some ASX BNPL shares plummet more than 90% in FY22?
- Guess which 2 ASX shares were the best and worst All Ordinaries performers of FY22
- Here are the 3 most heavily traded ASX 200 shares on Thursday
- Why Block, Bubs, Infomedia, and Zip shares are dropping
- Zip share price cops 6% slashing as analyst fears grow
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 Affirm Holdings, Inc., 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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