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TGIF: Why is the Zip share price rocketing 10% today?

Zip's stock is rebounding after its recent tumble.

Posted by
Brooke Cooper
Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.
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Key points
  • The Zip share price reached a high of $1.12 on Friday morning, representing a 9.8% gain
  • Interestingly, there's been no news from the company to explain its upwards momentum
  • Right now, Zip is the ASX 200 financial sector's top Friday performer 

The Zip Co Ltd (ASX: ZIP) share price seems to be pulling itself together after a disastrous week, surging nearly 10% on Friday morning.

And its timing couldn't be better. The buy now, pay later (BNPL) giant's stock tumbled 2.7% on Tuesday and 5.1% on Wednesday before ending yesterday's session flat.

At the time of writing, the Zip share price is trading at $1.09, 7.39% higher than its previous close.

For context, the All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) are both in the green on Friday. They've gained 0.8% and 0.75% respectively.

Let's take a look at what might be pushing the BNPL stock to a strong week's end.

a small boy dressed in a superhero outfit soars into the sky with a graphic backdrop of a cityscape.

Image source: Getty Images

Zip share price soars towards the weekend

The Zip share price is the ASX 200 financial sector's top performer on Friday.

But another sector is likely helping to boosting it higher. The BNPL stock generally tracks more in line with the S&P/ASX 200 Information Technology Index (ASX: XIJ) ­– and that's good news today.

The tech sector is currently the ASX 200's best performing sector, recording a gain of 2.09%.

Today's top performing ASX 200 tech shares include Life360 Inc (ASX: 360), EML Payments Ltd (ASX: EML), and Tyro Payments Ltd (ASX: TYR).

Its strong performance on Friday is likely a reaction to yesterday's session on the tech-heavy NASDAQ exchange.

While most of Australia slept last night, the Nasdaq Composite Index (NASDAQ: .IXIC) gained 3%. And while its nice to wake up to a sea of green, we probably shouldn't get used to it.

Nasdaq futures have slipped on Thursday night (Friday, Aussie time), after Amazon.com Inc (NASDAQ: AMZN) and Apple Inc (NASDAQ: AAPL) posted results.

Sadly, today's gains haven't been enough to boost the Zip share price into the green.

The BNPL stock has tumbled nearly 75% since the start of 2022. It's also around 87% lower than it was this time last year.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Amazon, Apple, EML Payments, Life360, Inc., Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended Amazon, Apple, and Tyro Payments. 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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