The Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) share price performances have gone from bad to worse after both buy now, pay later (BNPL) giants have lost more than 35% in value since mid-February.
The Zip share price is still up ~51% year-to-date, while Afterpay has dipped into negative territory and down 13% for the year.
Just as you think the pain might be over, today looks to be shaping up to be another tough session for Afterpay and Zip shares.
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US tech shares under fire
Rising bond yields continued to threaten richly valued tech and growth sectors overnight. Benchmark US government yields hit a one-year high of 1.60% despite the US being close to passing its US$1.9 trillion stimulus package.
The Nasdaq Composite (NASDAQ: .IXIC) slumped 2.41% while the S&P 500 Index (SP: .INX) was down only 0.54% and the Dow Jones Industrial Average Index (DJX: .DJI) finished the session 0.97% higher.
More notably, leading US-listed BNPL giant, Affirm Holdings Inc (NASDAQ: AFRM) closed 8.42% lower at US$74.31. This brings its shares to a new all-time low after listing on 13 January 2021 at an IPO offer price of US$39. Its shares hit a peak of US$146.90, a 275% return for those that managed to participate in the IPO. Conversely, those that bought Affirm shares at its peak would also find a 50% hole in their pockets on current prices.
The Affirm share price reflects a similar sell-off narrative as the ASX-listed BNPL shares. Affirm shares peaked on 10 February, a similar timeline to Afterpay and Zip shares, which began to plateau around the same time.
Why are the Afterpay and Zip share prices still falling?
Despite being competitors, the Affirm, Afterpay and Zip share price largely move in tandem.
The broader weakness across US tech shares combined with Affirm's 8.42% slump and inability to bounce off lows has translated into a weaker open for ASX-listed BNPL shares.
At the time of writing, the Zip share price has bounced off its intraday low of $8.41 to be trading for $8.51, which is down 4.71%, while the Afterpay share price is still sitting at intraday lows, down 8.96% at $101.20 per share.
