It goes from bad to worse for the Zip share price…
The post Why the Zip (ASX:Z1P) share price is sinking 9% to a 52-week low appeared first on The Motley Fool Australia. –
The Zip Co Ltd (ASX: Z1P) share price is out of form again on Monday. In early afternoon trade, the buy now pay later (BNPL) provider’s shares are down over 9% to a 52-week low of $4.37.
This means the Zip share price is now down 22% since the start of the year.
This is particularly disappointing given that in March its shares were up 160% year to date to a record high of $14.53. From top to bottom, this represents a decline of 70% for the Zip share price.
Why is the Zip share price falling again today?
Investors have been hitting the sell button on Monday amid broad weakness in the tech sector and particularly within the BNPL industry.
For example, the Afterpay Ltd (ASX: APT) share price is down almost 5%, the Sezzle Inc (ASX: SZL) share price is down 10%, the Affirm share price fell 6% on Friday night, and the Square share price also dropped 6% on Friday.
This follows a poor night of trade on the tech-focused Nasdaq index on Friday, which saw the famous index drop 1.9%. At the time of writing, the S&P/ASX All Technology Index is down 2%.
Outside this, criticism of Zip’s integration with Microsoft’s Edge browser could also be weighing on sentiment a touch.
Is this a buying opportunity?
While opinion remains divided on the Zip share price in the broker community, one leading broker is very positive.
According to a recent note out of Morgans, its analysts have an add rating and $8.56 price target on its shares. This implies potential upside of 96% for investors over the next 12 months.
Morgans likes the Zip share price due to its attractive valuation in comparison to its peers. The broker also continues to “see longer term upside if Z1P can continue to execute on its ambitions of becoming a global payments player.”
The post Why the Zip (ASX:Z1P) share price is sinking 9% to a 52-week low appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Square, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.