Why is the Sezzle share price tumbling 8% on Wednesday?

Upset woman with her hand on her forehead, holding a credit card.

Upset woman with her hand on her forehead, holding a credit card.

Perhaps the only good thing one could say about the share market today is that the falls aren’t as bad as Monday or Tuesday. Yes, the S&P/ASX 200 Index (ASX: XJO) is once again in the red so far this Wednesday. At the time of writing, the ASX 200 is down by 0.16% at around 7,040 points. But that only makes the movements of the Sezzle Inc (ASX: SZL) share price look even worse by comparison.

Sezzle shares have been smashed today. The by now, pay later (BNPL) share is currently down by a painful 7.65% at 78 cents a share. What’s worse for investors, Sezzle hit a new 52-week low of 77 cents a share at around midday today. Its current 52-week high of $9.83 is starting to feel absurdly far away.

So why are Sezzle shares enduring such a nasty selloff today?

Why is the Sezzle share price tanking 8% today?

Well, it’s not entirely clear. The company hasn’t put out any news, announcements or developments today. Or indeed recently.

However, BNPL shares aren’t exactly in favour right now. While not falling by as much as Sezzle, Zip Co Ltd (ASX: ZIP) shares are also down by around 3.4% today to $1 a share. That’s just a whisker from the company’s own 52-week low of 98 cents.

So the woes of Sezzle and the other ASX BNPL shares could be connected to what happened with a prominent US-based BNPL share overnight. As we covered this morning, Affirm Holdings plunged by 11.66% overnight (out time) to US$18.19 a share. That was after the company descended as low as US$16.56 a share during intra-day trading – a new 52-week low of its own. Affirm’s woes seemed connected to another financial company, Upstart reporting a disappointing earnings result.

So it seems like the troubles that a few US-based financial and BNPL shares could be spilling over into the ASX today. This could be why we are seeing the Sezzle share price tank so dramatically. Sezzle is also a US-based company, which probably isn’t helping its cause today, and could explain why it is suffering so much more than other ASX BNPL shares like Zip.

At the current Sezzle share price, this BNPL share has a market capitalisation of $170.58 million.

The post Why is the Sezzle share price tumbling 8% on Wednesday? appeared first on The Motley Fool Australia.

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

Before you consider Sezzle, 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 Sezzle 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

Motley Fool contributor Sebastian Bowen 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 Affirm Holdings, Inc., Upstart Holdings, Inc., and ZIPCOLTD FPO. The Motley Fool Australia has recommended Upstart Holdings, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/7WKX5kB

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s