Why the Sezzle (ASX:SZL) share price is charging 7% higher today

The Sezzle Inc (ASX:SZL) share price is on fire today, rising by more than 7%. Here's why this ASX BNPL company might be on the move.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Sezzle Inc (ASX: SZL) share price is having a stellar day today, charging 7.1% higher at the time of writing to $11.61 a share. This latest move caps off what has been a corker couple of months from the company.

Back on 15 December, Sezzle shares were asking just $5.38 each. That means Sezzle is up more than 116% in 2 months, 86% year to date, 50% over the past month, and almost 17% over the past week. And (get ready for this one), Sezzle is now up a millionaire-making 7,000% over the past 12 months. Hot damn.

So what is the catalyst behind these latest share price moves?

Sezzle sizzles

There is no obvious catalyst as to why Sezzle shares are on fire today. The last major announcement out of the company came out on Thursday last week. Back then, Sezzle told investors that the company had signed a US$250 million receivables funding facility with Goldman Sachs Bank USA and Bastion Funding. Sezzle told the markets that the money would be used to further aid the company's expansion in the United States and Canada. Sezzle shares were up 6% on that news at the time.

However, one way to explain today's movement may be to look to other shares in the ASX fintech and buy now, pay later space (BNPL). Sometimes a rising tide just happens to lift all boats.

ASX companies in this space are on fire today. Zip Co Ltd (ASX: Z1P) shares are up 14.77% at the time of writing to $12.44. Earlier today, we also covered some dramatic share price movements for Douugh Ltd (ASX: DOU) and IOUpay Ltd (ASX: IOU). Both of those companies have received 'speeding tickets' from the ASX as a result of the sharp share price spikes both companies experienced in early trade. IOUpay shares are still up by more than 60% today.

Given Sezzle is a recent strong performer and a member of the BNPL space, it's possible that investors just got a little carried away with all of the euphoria happening today and have sent Sezzle's shares along for the ride.

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia has recommended Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Happy man working on his laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed another strong showing this Tuesday.

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which little ASX tech share is surging 20% on a huge income rise

A change a contract could hint at future profitability.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Aeris Resources, Mesoblast, Pointsbet, and Worley shares are sinking today

These shares are having a poor session on Tuesday. But why?

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Clarity Pharmaceuticals, DroneShield, IGO, and Serko shares are surging

These ASX shares are having a strong session on Tuesday. But why?

Read more »

A middle aged couple look at clothing on a rack in a retail store
Share Market News

How Aussie retail sales just boosted the ASX 200 on Tuesday

The latest Aussie retail sales data is offering a boost to the ASX 200. But why?

Read more »

A silhouette shot of a man holding a control in his hands and watching as a drone hovers overhead with sunrays coming from the sky.
Technology Shares

Why the Droneshield share price is flying higher on Tuesday

ASX investors are bidding up Droneshield shares on Tuesday. But why?

Read more »

Worker at a gas and oil pipeline.
Energy Shares

Are Woodside shares dirt cheap at two-year lows?

This energy giant's shares just hit a two-year low.

Read more »

Broker looking at the share price.
Broker Notes

Guess which 3 ASX 200 shares were just upgraded by top brokers

Leading brokers forecast 12-month share price gains of up to 15% for these ASX 200 companies.

Read more »