The Zip Co Ltd (ASX: ZIP) share price is finally heading in the right direction again on Thursday.
In morning trade, the buy now pay later (BNPL) provider's shares are up over 4% to $1.06.
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Why is the Zip share price storming higher?
Investors have been bidding the Zip share price higher today despite there being no news out of the company.
However, it is worth noting that the tech sector is performing a lot more positively today. For example, the S&P/ASX All Technology Index is up 0.4% at the time of writing.
And while the tech focused Nasdaq index was flat during overnight trade, futures contracts are pointing to a much-improved night of trade on Thursday. According to CNBC, futures are currently pointing to the Nasdaq index opening 1.2% higher.
This appears to have been driven by the release of a stronger than expected quarterly update by Meta (Facebook), which has boosted investor sentiment.
What else could be boosting Zip's shares?
With the Zip share price falling to a new multi-year low on Wednesday, it's possible that some investors believe its shares have been oversold and are buying them today.
Especially given that many of the most bearish brokers have price targets in or around the current level. While price targets are liable to change, as we see quite often, there may be some investors that finally believe a bottom has been found for the Zip share price.
Time will tell if that is the case.
