The Zip Co Ltd (ASX: Z1P) share price is rocketing today.
At the time of writing, shares in the buy now, pay later (BNPL) provider are trading for $6.88 – up 5.52%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.71% higher.
While the company hasn't made any price-sensitive announcements today, something clearly has investors excited.
Let's take a closer look.
Image source: Getty Images
Why is Zip zapping?
Share prices move for a myriad of reasons and sometimes it is not always clear what the reason is.
One reason may just be a general lift in the market's mood. The ASX 200 is rising today and comes off the back of a few weak days for the index. Investors may very well just be in a buying mood. Zip and other growth shares tend to move with the market. Not necessarily at the same levels, and not always every day, but over the long term, the movements of the market and Zip share price match pretty well.
BNPL shares in particular are having a very good day. Besides the Zip share price, the Humm Group Ltd (ASX: HUM) share price is also about 5% higher and Sezzle Inc (ASX: SZL) shares are up 13.6% as of writing.
Sezzle is having a particularly good day today, which could be down to its new partnership with Target Corporation (NYSE: TGT) in the US.
Overnight, the US retailing giant announced the official launch of its BNPL offering with Sezzle and Affirm (NASDAQ: AFRM) ahead of the busy holiday season. As Motley Fool has reported already, the deal with Target has the potential to boost Sezzle's sales materially in the coming years.
Today's Sezzle announcement may be boosting the entire BNPL sector. It may be a sign to investors of opportunities across the industry.
What else has affected the Zip share price recently?
Last week, the Zip share price received a huge boost when the company came to an agreement with software giant Microsoft Corporation (NASDAQ: MSFT).
According to its release, Zip will integrate its technology into the shopping experiences within Microsoft Edge. In turn, shoppers using the web browser will be able to use a digital payment option provided by Zip.
The integration into the company's web browser will begin rolling out in the United States first. Microsoft is the second-largest company on the planet by market capitalisation. This news was a big deal for Zip. It is not uncommon for momentum from material developments to carry on for days afterwards.
