Well, it’s been another dreary day for the Sezzle Inc (ASX: SZL) share price. Sezzle shares are currently down a nasty 4.25% at $1.12 so far in this Wednesday’s trading session. That’s a new 52-week low for this buy now, pay later (BNPL) share. But not only that, this move represents Sezzle’s lowest share price since the COVID market crash of 2020. Yes, the last time we saw this kin od share price in front of Sezzle was in early April 2020.
This week also represents the first time since 2020 that Sezzle has descended below its ASX initial public offering (IPO) price. Back in July 2019, Sezzle IPO-ed at a share price of $1.22. At the time, they didn’t start at $1.22 for long, rocketing over $2 a share soon after. But, things certainly aren’t as rosy today.
What’s gone so wrong with the Sezzle share price?
So what’s gotten investors fleeing the Sezzle share rice? Well, it’s not entirely clear. But the markets have been in an unforgiving mood of late for most ASX BNPL shares. Sezzle’s fellow BNPL player Zip Co Ltd (ASX: Z1P) has hit a new 52-week low today as well.
Speaking of Zip, it’s possible that investor sentiment regarding the company’s planned acquisition of Sezzle might have played a role in the low share prices we see today. When the all-scrip tie-up was first announced earlier this year, Zip’s shares fell substantially while Sezzle share price rose. But investors have since sent Sezzle down to new depths, which we see the latest of today. It would seem that investors of both companies are both uninspired (to say the least) when it comes to the merger.
So a general distaste for ASX BNPL shares from the markets may be responsible for Sezzle’s new lows today. Or it could reflect the attitudes of investors for the Zip-Sezzle tie up. Whatever the reason, no doubt Sezzle shareholders are hoping for brighter days ahead.
At the current Sezzle share price, this ASX BNPL share has a market capitalisation of $235.27 million.
The post This ASX BNPL share is now back below its IPO price for the first time since the COVID crash 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
- Could the Zip share price ever actually go to zero?
- 3 beaten up shares you might be surprised to learn are still part of the ASX 200
- Why A2 Milk, G8 Education, Nearmap, and Zip shares are dropping
- Zip shares hit new multi-year low. What’s going on?
- The Zip share price is a buy with 180% upside: broker
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. owns and has recommended ZIPCOLTD FPO. 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 Bruce Jackson.
from The Motley Fool Australia https://ift.tt/LVcJiqY
Leave a Reply