The Zip Co Ltd (ASX: ZIP) share price continues to take investors on a wild ride this week.
After tumbling 8.89% on Monday, the buy now, pay later (BNPL) company’s shares are rebounding strongly of late.
Yesterday, Zip shares recovered 4.27% at Tuesday’s market close despite no announcements from the group.
And today, its shares zoomed skyward 11.7% to finish at 95.5 cents at the final bell â just pipping last week’s closing price of 95 cents per share.
Let’s take a look at what could be driving these recent gains.
What’s driving Zip shares upwards today?
The Zip share price is on the move following an uptick across the S&P/ASX 200 Financials Index (ASX: XFJ).
At the end of Wednesday, the sector finished up 1.11% at 6,219.3 points.
It appears the financial industry is reeling from the heavy beating it took on Monday when investors fled the market.
Fears reemerged about an aggressive rate hike from the United States Federal Reserve after hawkish comments by its chair Jerome Powell.
However, it seems the financial market is recovering for now with a knock-on effect for Zip shares.
No doubt, this will bring some relief to Zip shareholders after seeing the company’s shares drop in value in 2022.
In its full-year results, Zip reported record revenue of $620 million, but posted a $1 billion loss on the bottom line.
Furthermore, net bad debts continued to increase, in which Zip has made a priority to tidy up.
Zip share price summary
Over the past 12 months, the Zip share price has plummeted 86%, with year to date currently down 78%.
Based on today’s price, Zip presides a market capitalisation of around $588.22 million.
The post Why did the Zip share price zoom 11% higher today? appeared first on The Motley Fool Australia.
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More reading
- Here are the top 10 ASX 200 shares today
- Why is the Zip share price slipping 10% on Monday?
- These are the 10 most shorted ASX shares
- Here’s why UBS tips the Zip share price to halve
- Zip’s FY22 loss is 165% of its market cap. So why did its shares go up?
Motley Fool contributor Aaron Teboneras 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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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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