Why is the Zip share price making a partial recovery this afternoon?

The BNPL stock dodged hitting its 52-week low on Friday – just.
The post Why is the Zip share price making a partial recovery this afternoon? appeared first on The Motley Fool Australia. –

The embattled Zip Co Ltd (ASX: ZIP) share price is recovering some of its earlier losses as the end of the trading week approaches.

The buy now, pay later (BNPL) giant’s stock traded within half a cent of its 52-week low of $1 this morning.

Fortunately, it’s since bounced back. At the time of writing, the Zip share price is $1.04, 2.35% lower than its previous close.

That’s relatively in line with the broader market’s performance on Friday. The S&P/ASX 200 Index (ASX: XJO) is currently trading 2.39% lower while the All Ordinaries Index (ASX: XAO) has dropped 2.49%.

Let’s take a closer look at what might be impacting the stock on Friday.

Zip share price recovers some of Friday’s losses

The Zip share price is trading higher – though, still in the red – this afternoon after avoiding hitting its 52-week low by a fraction of a cent.

The stock is now trading just 5% lower than it was at the end of last week. The ASX 200 also has dumped around 3% since last Friday’s close.

And while the BNPL stock is certainly in the red, it’s outperforming the tech sector.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) is currently down 4.36%.

While Zip is technically at home on the S&P/ASX 200 Financials Index (ASX: XFJ) – which has fallen 2.09% today – it more often trades in line with the tech sector.

The tech index’s plunge is being led by the Life360 Ltd (ASX: 360) share price’s 10% tumble.

Meanwhile, stock in Block Inc (ASX: SQ2) – the new owner of Zip’s former BNPL peer Afterpay – is one of the sector’s better performers, recording a drop of just 1.8%.

Today’s falls included, the Zip share price is 76% lower than it was at the start of 2022. It has also tumbled 85.5% since this time last year.   

The post Why is the Zip share price making a partial recovery this afternoon? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Zip right now?

Before you consider Zip, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zip wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Why ARB, AVZ, Temple & Webster, and Zip shares are sinking
The Zip share price is plunging 9% today. Here’s why
Leading brokers name 3 ASX shares to sell today
Why Block, Domain, Metcash, and Zip shares are pushing higher
Back in the green: Zip share price launches 6% on Tuesday

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 Block, Inc., Life360, Inc., and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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