Zip (ASX:ZIP) shares ended over 5% higher today, here’s why

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Zip (ASX:ZIP) shares ended over 5% higher today, here’s why

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Zip (ASX:ZIP) shares
Image source: © Timonschneider | Megapixl.com

Highlights

  • Zip shares closed 5.88% higher at AU$0.99 each today.
  • While Zip did not provide investors with any price-sensitive information today, the most likely cause of the price hike could be broader tech sector improvement.
  • The S&P/ASX 200 Information Technology Index closed in green today, up 6.95% at 1,445.20 points.

After yesterday's disastrous session, the share price of Zip Co Ltd (ASX:ZIP) concluded the week on a positive note.

The buy now, pay later (BNPL) company's shares closed 5.88% higher today (13 May 2022) at AU$0.99 per share on ASX.

While Zip did not provide investors with any price-sensitive information today, the most likely cause of the price hike could be broader tech sector improvement.

The S&P/ASX 200 Information Technology Index closed in green today, up 6.95% at 1,445.20 points. Meanwhile, the ASX 200 Index also closed at 7,075.10 points, jumping 1.93%.

Also Read: Zip (ASX:ZIP) shares nosedive 10% today, here's why

Zip share price jumps

Zip shares have recovered after plunging to a multi-year low of 91.5 cents in intraday trade yesterday (12 May 2022).

Most ASX 200 tech stocks were also in the red. In fact, after the news of inflation overseas, the S&P/ASX 200 Information Technology Index (ASX: XIJ) dropped 8.7% on Thursday (12 May 2022).

However, today, all the sectors were up. Among all, IT was the best performing sector today, rebounding from its recent decline. This sector has been off 6.97% for the past five days.

Despite today's minor recovery, the price of Zip shares is still 77% lower than at the start of 2022. Since this time last year, it has likewise dropped by 85%.

Source: © Avictorero | Megapixl.com

Recent news shares by Zip

Last week (4 May 2022), Zip informed that a significant number of shares would be gradually released from voluntary escrow over the next month or so.

Image Source: © 2022 Kalkine Media ®

Data Source- Company announcement dated 04 May 2022

The ordinary shares stated above are currently listed on the ASX and were issued in connection with the company's acquisitions of Twisto Payments, Spotii Holdings, and QuadPay Inc, respectively.

Zip had shared its third-quarter results for the financial year 2022 on 21 April 2022.

  • Zip's group income increased by 39% year on year to AU$159.2 million.
  • The company's transaction volume was AU$2.1 billion (up 27% YoY), while transaction and customer counts were up 48% and 78%, respectively, for the quarter.
  • Zip had a strong cash transaction margin of 2.3%, up from 2.1% in 1HFY2022.
  • The platform's merchant base has grown to 86.2k users (up 90% YoY).
  • Among the major enterprise retailers who have joined are Best Buy and eBay Australia.

Also Read: Zip (ASX:Z1P) shares gain on robust 3QFY22 results

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