The Sezzle Inc (ASX: SZL) share price is sliding today amid news the company will be removed from the S&P/ASX All Technology Index (ASX: XTX) later this month.
The buy now, pay later (BNPL) provider will be dumped from the index before the market opens on 19 September.
The Sezzle share price is trading at 59 cents right now, 4.07% lower than its previous close.
For context, the All Technology Index is down 0.71% at the time of writing. Meanwhile, the All Ordinaries Index (ASX: XAO) is up 0.03%.
Letâs take a closer look at whatâs likely weighing on the fintechâs stock today.
Sezzle share price slides on removal from All Tech Index
The Sezzle share price is struggling on news the company will be dumped from the All Tech Index as part of its next quarterly rebalance.
That means funds tracking the index will be forced to sell Sezzleâs stock prior to 19 September.
The resulting increase in supply will likely drive demand for the BNPL provider’s stock down, thereby weighing on its share price.
Sezzle is one of eight companies being booted from the index this quarter.
Others include fellow BNPL provider IOUPay Ltd (ASX: IOU), as well as Airtasker Limited (ASX: ART) and Atomos Ltd (ASX: AMS).
Only one company will be added to the All Tech Index this quarter. That is telecommunications software provider Symbio Holdings Ltd (ASX: SYM).
S&P Dow Jones Indices announced the changes after the market closed on Friday.
It follows a dire period for the Sezzle share price.
The stock has tumbled 80% since the start of 2022. Itâs also trading 91% lower than it was this time last year.
For comparison, the All Tech Index has fallen 29% year to date and 34% over the last 12 months.
The post Why is the Sezzle share price sinking on Monday? appeared first on The Motley Fool Australia.
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More reading
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- Why has the Sezzle share price exploded 128% in a month?
- Why is the Block share price tumbling 6% today?
- Why is the Zip share price behaving so strangely on the ASX today?
- Sezzle share price soars 22% as BNPL company eyes profit target by year-end
Motley Fool contributor Brooke Cooper 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 Atomos Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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