Home / Sector / BNPL shares / Sezzle shares plunge another 16%, now down 60% in a week

Sezzle shares plunge another 16%, now down 60% in a week

Why have Sezzle shares collapsed to a new record low today?

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Sebastian Bowen
Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham
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It's going from bad to worse for the Sezzle Inc (ASX: SZL) share price this Wednesday. Sezzle shares have collapsed by another 15.7% so far this Wednesday and are now trading at 22 cents a share. That's despite the All Ordinaries Index (ASX: XAO) having a day of mild gains so far today.

This latest plunge now puts the Sezzle share price down a painful 59.8% over the past five trading days alone. Yet, a week ago, Sezzle shares were over 50 cents each, a far cry from the 22 cents we see today (a new all-time low). Sezzle is now down a devastating 92.95% in 2022 thus far and more than 98% down from the all-time high of over $11 a share that we saw back in 2020.

So what on earth is going on with the Sezzle share price to elicit such a savage selloff from the market?

Side-on view of a devastated male investor laying his head on his laptop keyboard

Image source: Getty Images

Why have Sezzle shares fallen another 16% today?

Well, it appears that it was the news we heard yesterday that is continuing to punish the Sezzle share price today. Yesterday, we learned that the deal between Sezzle and its fellow buy now, pay later (BNPL) share Zip Co Ltd (ASX: ZIP) has collapsed.

This deal, first gazetted back in February, would have seen Zip acquire Sezzle in full. It was to be an all-scrip deal worth almost $500 million at the time. This would have seen Sezzle shareholders receive 0.98 Zip shares for every Sezzle share owned.

However, both the Sezzle and Zip share prices have been in freefall ever since the deal was announced. As such, it had become increasingly clear that it would be difficult to implement on its original terms.

This all came to a head yesterday when both companies announced that the deal was off. Zip shares have responded very positively, up more than 7% since the deal was announced. But it has been Sezzle that has copped the worst of ASX investors' disappointment.

So it's likely that it is the continuing fallout from this merger deal falling through that is behind the savage day Sezzle shares have copped this Wednesday.

At the current Sezzle share price, this ASX BNPL share has a market capitalisation of $45 million.

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 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 Scott Phillips.

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