The Sezzle Inc (ASX: SZL) share price has been a strong performer on Friday.
Earlier today the buy now pay later provider’s shares were up as much as 4% to $6.86.
When the Sezzle share price hit that level, it meant it was up an impressive 15% for the week.
Why is the Sezzle share price charging higher this week?
There appear to be a couple of catalysts for this impressive gain.
The first is a rebound in buy now pay later provider shares this week following some heavy declines in September.
Investors were selling buy now pay later shares earlier this month due to a tech selloff on Wall Street and news that PayPal is launching a rival product in the United States in the final quarter of 2020.
This increase in competition from one of the biggest forces in the payments industry understandably spooked investors.
Though, I suspect some investors believe the selloff has been overdone and created a buying opportunity. I would certainly say this is the case with Afterpay shares.
What else is supporting the Sezzle share price?
Another catalyst for this strong gain could be something that is happening next week.
On Monday Sezzle will be added to the S&P/ASX All Technology Index (ASX: XTX). This could have led to an increase in demand for shares from index tracking funds or from fund managers with particular mandates.
It isn’t just Sezzle joining the index next week. Dicker Data Ltd (ASX: DDR) is another company joining the S&P/ASX All Technology Index on Monday. Shareholders of the wholesale distributor of computer hardware and software have seen its shares climb 4% this afternoon and 7.5% for the week.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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