Why did the Zip share price rise so much?
But it has been a strong day for growth shares and particularly the buy now, pay later sector. The Afterpay Ltd (ASX: APT) share price went up 10%, the Sezzle Inc (ASX: SZL) share price rose 9.1%, the Splitit Ltd (ASX: SPT) share price went up 15%, the Openpay Group Ltd (ASX: OPY) share price rose 6% and the Ioupay Ltd (ASX: IOU) share price went up 5.2%.
Afterpay and Zip are not exactly the same business, but investors may be thinking that a strong US update from Afterpay could spell good news for Zip as well.
Afterpay reported its US customer base was 35% higher than August 2020, whilst traffic to Afterpay’s brand partners was also “strong”. It said that it now has more than 16 million customers in the US and a total of 75,000 global retail merchants.
Is it time to jump on Zip shares?
The Zip share price has fallen significantly since the middle of February 2021, but a lower price doesn’t necessarily mean it’s great value. There are plenty of ASX growth shares that are already making large profits and fit the Rask investment philosophy much better.