The Zip Co Ltd (ASX: ZIP) share price is tantalisingly close to recording its first green day of June so far. At the time of writing, Zip shares are up 1.57% at 64 cents each. But that comes after the buy now, pay later (BNPL) share having some big swings during trade, despite being in the green for most of the day.
If Zip does close above 64 cents by market close this afternoon, it will indeed be the company's first day of gains for what must feel like a veritable eternity for Zip investors. The company has lost a rather shocking 35% of its value over June alone (and we're only nine days in).
Year to date in 2022 thus far, Zip's losses stand at a painful 85% or so. Zip has also lost more than 94% of its value since topping $12 a share back in early 2021.
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Why has the Zip share price plunged 85% in 2022?
It's been a seemingly perfect storm of negative news for Zip lately. Recent news that tech giant Apple Inc (NASDAQ: AAPL) will be launching a BNPL product of its own called Apple Pay Later spooked investors yesterday, with the company tumbling more than 6% at one point.
Earlier this week, my Fool colleague Mitchell suggested that Zip could be a prime candidate for some tax-loss selling as we approach the end of the financial year as well. And last month, we discussed how higher inflation and market volatility, especially in the tech space, have been hurting Zip too.
To make matters worse, May saw Zip announce that a number of its shares would be released from voluntary escrow as well, which could have helped accelerate the selling pressure at a time when Zip was already falling in value.
So all in all, it's been a horror few months for the Zip share price. But could the worst be over? Well, as we covered just yesterday, brokers could start to see some value in Zip at the current levels. ASX broker Macquarie has reportedly cut its 12-month share price target by 43%.
That leaves Zip with a share price target of $1.05. So, that would still imply a potential upside of around 69% for the next year. No doubt that might be of some comfort to Zip investors right now.
