In late morning trade, the All Ordinaries Index (ASX: XAO) is up a healthy 0.7%. But shares in three leading BNPL companies are running even hotter.

Here's how the ASX BNPL shares are faring at the time of writing:

• Shares in Block Inc (ASX: SQ2), which acquired Afterpay in January 2022, are up 2.4%
• Zip Co Ltd (ASX: ZIP) shares are up 4.2%
• Sezzle Inc (ASX: SZL) shares are up 1.4%

Here's what's happening.

What's boosting investor sentiment in ASX BNPL shares?

The pay by instalment industry looks to be catching some tailwinds today following news that new laws, intended to protect consumers from taking on too much debt, won't be introduced in 2023 after all.

The proposed laws, now pushed back into 2024, are likely to see buy now, pay later companies regulated in much the same way as credit card companies. Various regulatory plans, first proposed two years ago, have intermittently pressured ASX BNPL shares as investors weigh the potential impact to their business models.

But investors will now have to wait and see just what shape the new industry legislation takes. And just how much of an impact this may have on the future revenue streams of ASX BNPL shares.

This comes after Financial Services Minister Stephen Jones admitted the government won't get to the matter this year.

"We are going to run out of runway this year. We have been bombarded with stuff to get through parliament," Jones said (quoted by The Australian Financial Review). "Our drafting resources in the Commonwealth are stretched to the limit, especially for Treasury."

He added that investors can expect greater long-term clarity "early next year".

"That will be my objective to get it out there," Jones said.

While the delay looks to be good news for ASX BNPL shares, not everyone is happy with the government kicking the regulatory can down the road.

Consumer Action CEO Stephanie Tonkin noted:

We are worried about another significant uptake in these products in the lead-up to Christmas. Responsible lending laws remain desperately needed to reduce the harm caused by buy now, pay later products.

Foolish takeaway

Whether you pay cash, use a debit or credit card, or make use of the pay by instalment services offered by ASX BNPL shares, spend responsibly.

And don't forget to set aside a little money each month to invest in the stock market.

Over time, you'll be glad you did.

The post ASX BNPL shares soaring as industry regulations pushed back to 2024 appeared first on The Motley Fool Australia.

In morning trade, the ASX share is crashing 27% to $11.75.

Why is this ASX share crashing?

Investors have been heading to the exits in their droves this morning after the buy now pay later (BNPL) provider announced its intention to delist from the Australian share market.

According to the release, the company has submitted a formal application to the Australian Securities Exchange (ASX) for its removal from the official list under ASX Listing Rule 17.11.

Subject to ASX approval, Sezzle expects that trading in the company's CHESS depository interests (CDIs) will be suspended on the ASX on or around the close of trading on 12 January 2024. After which, they will leave the ASX boards forever a couple of business days later on 16 January.

Shareholders have a couple of options before then. They can sell their shares on the ASX before the suspension or convert them to securities traded on the NASDAQ. Doing nothing will result in option two automatically happening.

Judging by the way the ASX share is crashing today, it seems that a lot of investors have opted for option one.

Why is Sezzle waving goodbye to the ASX?

Sezzle has named a number of reasons why it plans to leave Australia at the start of next year.

The first is that its listing on the NASDAQ is considered to be its primary listing now. It explains:

Primary listing is not in Australia: the primary purpose of the Company's listing on the NASDAQ was to move the Company's primary listing to the NASDAQ and give the Company access to what the Board considers to be a more attractive equity market for the Company, which improves the potential for further international investor interest.

It also highlights that the majority of its investor base is in the United States. It said:

Geographic considerations and ownership: a majority of the Company's securityholders are based in the United States. Further, the Company notes that the Company's 20 largest securityholders hold a combined total of 59% of the Company's issued capital, of which Australian securityholders represent less than 7%.

Another reason that has been noted is the low liquidity of Sezzle shares on the ASX. While today's crash means there's a high volume, this isn't usually the case. For example, a week ago, just 3,973 shares changed hands. It commented:

Low liquidity: there is a relatively low average daily trading volume in the Company's CDIs on the ASX. The Board considers there is a risk that low levels of trading activity can cause securities price volatility and makes an assessment of the value of the Company's securities difficult. The Company also believes that the current dual listing of the Company's securities on the ASX and the NASDAQ reduces the trading volume on the NASDAQ, and as a result of the delisting, the Company's trading volume on the NASDAQ may increase and provide better liquidity to all of the Company's securityholders.

The post Guess which ASX share is crashing 27% on Tuesday appeared first on The Motley Fool Australia.

In morning trade, the buy now pay later (BNPL) provider's shares are up 22% to $24.54.

Why is the Sezzle share price on fire today?

Investors have been buying the company's shares today after the company released a business update.

According to the release, Sezzle was on form in August and delivered strong top-line growth over the prior corresponding period.

Sezzle's total income increased to US$14 million (A$21.6 million) in August, representing a 44.3% year on year and 11.7% month on month increase. This means that total income as a percentage of underlying merchant sales (UMS) increased 188 basis points year on year to 8.7%.

In addition, for the month of August, Sezzle recorded net income and adjusted EBITDA of US$0.6 million and US$2.4 million. This is a huge improvement on the cash burn it has reported in recent years.

In light of this, the company finished the period with a healthy cash balance of US$60.7 million and US$71.7 million drawn from its US$100 million credit facility.

Other key metrics heading in the right direction are its active subscribers of Sezzle Premium and Anywhere, which exceeded 210,000 subscribers, and its average daily UMS. The latter is up approximately 2.6% in September versus the prior comparable period in August.

'A ripple effect'

Sezzle's Chairman and CEO, Charlie Youakim, was pleased with the company's performance ahead of the key holiday period. He said:

August has proven to be yet another testament to the efficacy and success of our latest product offerings. The continuous growth in our active subscriber base has a ripple effect, fortifying our UMS, Total Income, and Net Income. We are excited about the upcoming holiday period in the fourth quarter, as we have the right economic model for us and our customers.

The post Why is the Sezzle share price rocketing 22%? appeared first on The Motley Fool Australia.

Shares in the buy now, pay later stock closed up 12.8% on Thursday, finishing the day at $18.10.

At time of writing in afternoon trade on Friday, Sezzle shares are trading for $21.72 apiece, up 20%.

This sees the ASX BNPL share up a whopping 35.3% since Wednesday's closing bell.

For some context, the All Ordinaries Index (ASX: XAO) has gained 2.2% over this same period.

Here's why investors are sending the Sezzle share price rocketing.

What's lifting the ASX BNPL share?

Investor sentiment took a bullish turn Thursday morning when Sezzle reported that its long-running efforts to dual list on the Nasdaq Composite Index (NASDAQ: .IXIC) have finally paid off.

The ASX BNPL share had intended to commence trading on the tech-heavy Nasdaq exchange on 17 August.

However, things didn't go as planned.

Nasdaq halted trading in Sezzle shares due to "inadequate publicly available shares of common stock to make a market and facilitate proper trading".

This was because of the large number of shares held by investors in the form of Chess Depository Interests (CDIs) for trading on the ASX. The CDIs can be converted into Sezzle shares on a 1-for-1 basis.

But in good news for the ASX BNPL share, the stock resumed trading on the Nasdaq on Thursday under the ticker (Nasdaq: SEZL). Sezzle will also continue to trade on the ASX under its existing ticker.

According to the release, Nasdaq officials lifted the trading halt after the number of publicly available Sezzle shares eligible for trading in the US held through Depository Trust Company increased.

Sezzle reported there are currently 536,188 shares publicly available for trading.

Sezzle share price snapshot

With the past two days of gains factored in, the Sezzle share price is up a market-beating 39% in 2023.

The ASX BNPL share remains down 5% over the past 12 months and down a precipitous 95% from its February 2021 highs.

The post This beaten-down ASX BNPL share is up 35% in 2 days. Here's why appeared first on The Motley Fool Australia.

Sezzle shares are on fire today. The buy now, pay later (BNPL) stock closed at $19.20 a share yesterday afternoon. But this morning, Sezzle shares opened at $20.40 and are currently trading at a price of $22 a share, up a whopping 14.58% from yesterday's close.

So what on earth is going on here that has elicited such a dramatic jump in value for the Sezzle share price?

Why is the Sezzle share price jumping 15% today?

Well, it's a bit of a gosh-darn mystery.

We did get some sizable news out of Sezzle this morning, which is certainly worth discussing. Sezzle had big plans for last night. Last night's trading session on Wall Street, specifically on the NASDAQ exchange, was supposed to be the Sezzle share price's big debut on the US markets.

The company had plans to launch a US NASDAQ listening, under the ticker code 'SEZL', with the first trading session scheduled for last night (Wednesday's trading for the American market).

However, things didn't exactly go to plan. This morning, Sezzle released an ASX announcement, which revealed the following:

On August 17, 2023, Nasdaq halted trading in the common stock and advised Sezzle that there currently exists inadequate publicly available shares of common stock to make a market and facilitate proper trading of common stock on Nasdaq due to the large number of shares of common stock currently held by investors in the form of Chess Depository Interests (CDIs) for trading on the Australian Securities Exchange (ASX).

The CDIs are convertible at the option of the holders into shares of Sezzle common stock on a 1-for-1 basis. Sezzle is working with Nasdaq to resolve the matter as soon as practicable to resume trading.

So it's unclear why investors are responding to this notice (or indeed, if they are even responding at all) so positively this Friday. After all, a 17% gain is nothing to sneeze at.

Perhaps investors continue to move from Zip Co Ltd (ASX: ZIP) shares to Sezzle stock, as my Fool colleague Mitchell posited yesterday. Perhaps investors weren't looking forward to Sezzle's NASDAQ debut and are rejoicing at its delay.

Whatever the reason, no doubt Sezzle shareholders are delighted by today's events.

The Sezzle share price is now up a happy 41.2% in 2023 so far.

The post Why is the Sezzle share price soaring 15% on Friday? appeared first on The Motley Fool Australia.

Shares in the global buy now, pay later (BNPL) company are 8.4% worse off than yesterday, trading at 38 cents apiece as we pass the closing bell. As a reference point, fellow payment technology company Block Inc (ASX: SQ2) is 1.06% lower.

It's difficult to say what precisely is causing such affliction among Zip shares today without an announcement from the company. However, a few developments could be filtering into some decision-making among shareholders — including an upcoming milestone for smaller BNPL player Sezzle Inc (ASX: SZL).

Is Sezzle stealing the limelight from Zip?

Despite being less than one-third of the market capitalisation of Zip, Sezzle plans to make a big splash with investors tonight.

After proposing a direct listing on the Nasdaq Global Market in March, the company is set to make its official debut tonight. Listing on exchange in its home country, Sezzle shares are expected to begin swapping hands under the 'SEZL' ticker symbol once US trading commences.

You might be wondering: how does this relate to the Zip share price? Well, there is a chance it has brought the company to the attention of Zip shareholders. Upon further inspection, those Zip investors might have switched teams after preferring the grass on the other side.

For example, Sezzle has delivered positive net income for the past four quarters. In contrast, Zip posted a net loss of $1.15 billion for the 12 months ending 31 December 2022. Similarly, Sezzle has a net cash position on its balance sheet, while Zip does not.

There's no definitive evidence suggesting Zip shareholders are opting out for Sezzle shares instead. Though, the two have starkly different moves in share price. Shares in the soon-to-be Nasdaq debutant are up 10.5% to $19.20 this afternoon.

What else could be hurting the Zip share price?

Two other factors that might be pressuring Zip shares today are the latest unemployment data and ASX retail results.

Firstly, the Australian Bureau of Statistics revealed the unemployment rate rose to 3.7% in July. This was weaker than the 3.6% expected by commentators. Approximately 14,000 jobs were removed in July, indicating higher interest rates are taking effect.

Secondly, ASX retail shares have been handing down their results this week. Some of those reporting have revealed a slowing of growth in recent months. Super Retail Group Ltd (ASX: SUL) is one example today, revealing flat group sales growth in the first six weeks of FY24 versus a 9% increase in FY23.

Weakness in consumer spending is not a good sign for a company like Zip, which is intrinsically linked to discretionary spending. Hence, the above factors could also be dragging on today's Zip share price.

As shown in the chart above, Zip shares have fallen more than 60% over the past 12 months. This represents an extreme underperformance of the S&P/ASX 200 Index (ASX: XJO), which is mostly flat compared to a year ago.

The post Zip share price slips 8% as Sezzle prepares for Nasdaq debut appeared first on The Motley Fool Australia.

Zip shares are well in the green today. Certainly, the ASX 300 buy now, pay later (BNPL) share is faring far better than the broader market right now. At present, the Zip share price has risen by a wholesome 1.73% up to 41.2 cents a share. That's after the ASX's largest BNPL share closed at 40 cents each yesterday afternoon.

So why might investors be in an enthusiastic mood when it comes to the Zip share price this Wednesday?

Why is the Zip share price smashing the ASX 300 this Wednesday?

Well, it's hard to say. There's been no news or fresh announcements out of Zip itself today. However, we can point to a big development with another ASX BNPL share that might be having an impact on Zip investors regardless.

BNPL stock Sezzle Inc (ASX: SZL) has just reported its quarterly results for the second quarter of 2023 (2Q23) this morning.

The company revealed that total income for the quarter rose to US$34.9 million, up from the US$29.3 million Sezzle reported for the same quarter last year (2Q22). It was also up slightly from the US$34.7 million that Sezzle reported for the first quarter of 2023.

Sezzle also revealed that its total subscribers rocketed from 14,000 in 2Q22 to 168,000 in 2Q23. But it wasn't all good news. The company also reported that its active consumers declined 18.7% year-on-year to 2.64 million, down from 3.25 million in 2Q22. Active merchants also fell, dropping from 47,000 in 2Q22 to 35,000 in 2Q23.

Even so, investors seem at least moderately impressed. Sezzle shares are currently up 1.06% at $19.10 each after climbing as high as $20 earlier this morning.

So it seems that these results could well be behind the commensurate, ASX 300-beating spike in the Zip share price that we've seen today as well.

Even so, it doesn't make up for what has been quite an awful year for the Zip share price. This ASX 300 BNPL share remains down 26.8% year to date today, as well as down by more than 67% over the past 12 months, as you can see below:

The post Why is the Zip share price smashing the ASX 300 today? appeared first on The Motley Fool Australia.

Sezzle shares closed yesterday trading for $23.81. Shares are currently swapping hands for $23.98 apiece, up 0.71%. For some context, the All Ordinaries Index (ASX: XAO) is down 0.53% at this same time.

That's a nice turnaround from the beginning of the week, which saw the ASX BNPL share close down 7.4% on Monday.

Here's what's helping Sezzle outperform the benchmark today.

What's boosting the ASX BNPL share today?

The Sezzle share price is getting some support on Friday following the release of the company's May business update.

Among the highlights, the ASX BNPL share reported an 18.5% year-on-year increase in total income. Income in May reached US$11.6 million (AU$17.5 million). This represents 9.1% of underlying merchant sales (UMS).

Despite that lift, Sezzle still reported a net loss of US$100,000 for the month. The company said the main driver of this loss was the anticipated increase in the provision for credit losses from prior period lows.

However, Sezzle noted that it still posted positive adjusted earnings before taxes, depreciation and amortisation (EBTDA) in May.

As of 31 May, the ASX BNPL share had a strong balance sheet, with US$63.6 million of cash in hand and US$58.8 million drawn on its US$100 million credit facility.

May also saw Sezzle launch its Pay-in-2 option, which allows consumers to pay for their purchases in two equal instalments over two weeks. And this month has seen the company launch Pay Anywhere, a subscription-based service. This is expected to fully roll out in 3Q23.

Also potentially stirring investor interest today, Sezzle updated the market on its Nasdaq listing efforts. Management reported they believe the company is on track to go live on the Nasdaq Capital Market around the end of 2Q23.

Commenting on the results lifting the ASX BNPL share today, Sezzle CEO Charlie Youakim said he was "incredibly excited about the progress the team has made on several of our key initiatives for FY23".

Youakim added:

Our team has worked tirelessly to ensure the successful launch of Pay-in-2 and Pay Anywhere. Based on early indicators, we're confident our efforts will pay off and lead to meaningful growth periods ahead.

Sezzle share price snapshot

The ASX BNPL share has enjoyed a strong comeback run over the past 12 months. Since this time last year, the Sezzle share price is up 138%.

The post ASX BNPL share Sezzle marches higher on Nasdaq listing update appeared first on The Motley Fool Australia.

That means companies offering interest-free products that allow consumers to pay for purchases in instalments will need to hold a credit licence and will have to assess users' ability to afford such debts.

Right now, stock in iconic ASX BNPL provider Zip Co Ltd (ASX: ZIP) is down 6.6%, trading at 53.8 cents.

Meanwhile, shares in Block Inc (ASX: SQ2) – the owner of former-market darling Afterpay – are slipping 1.63% at $87.75.

Smaller ASX BNPL share Splitit Inc (ASX: SPT) is also down, trading 2.61% lower at the time of writing.

Let's take a closer look at the regulations apparently set to take the industry by storm.

ASX BNPL shares slump amid talks of greater regulation

Financial Services Minister Stephen Jones will outline the government's plan to regulate BNPL providers under the Credit Act this morning, ABC News reports.

"BNPL looks like credit, it acts like credit, it carries the risks of credit," Jones will reportedly tell the Responsible Lending and Borrowing Conference.

Under flagged changes, BNPL providers will need to meet responsible lending obligations. That means they'll have to determine if consumers can afford to pay back BNPL debt before allowing the use of their products.

The industry is currently exempt from major regulation as participants don't charge interest.

News of the changes comes on the back of a Treasury paper released in November 2022.

It put forward three suggested regulatory paths for BNPL products, with the government apparently taking the middle ground. It's gunning for more than an affordability test but not as far as to regulate providers like credit card providers.

ABC News quoted Jones as saying:

The plan will protect people from the spirals of harm that unregulated, unrestricted lending can cause.

Simon Docherty, chief customer officer at Frollo, said recent research by the fintech found usage of BNPL services has jumped 25% year-on-year. Meanwhile, one in four users has resorted to using a credit card to pay off BNPL debt.

How much such changes will impact ASX BNPL shares will likely vary between providers. Zip, for instance, already holds a credit licence and conducts affordability tests on consumers in Australia, as my Fool colleague Bernd reported last year.

The post Credit call: ASX BNPL shares slump as regulation arrives appeared first on The Motley Fool Australia.

If you look up a quote for the Sezzle share price today, you will find that this company is trading for $20.16 a share at present. That's a whopping 3,050% rise from where the company closed at yesterday.

So what on earth is going on here? Has Sezzle just announced that its profits have 100x-ed? Or that it has just been acquired for $160 billion?

Well, sadly for investors, it's a hard no for both.

The Sezzle share price hasn't increased in value at all today. The dramatic change in share price that we are witnessing has not come from a revaluation of the company. Rather, it is due to Sezzle executing a share consolidation.

A share consolidation (sometimes referred to as a reverse stock split) happens when a company decides to revalue each of its individual shares by reducing the overall share count. It reissues its shares at a lower overall number, which has the effect of boosting each individual share's price.

To illustrate, let's use a simple example. Let's pretend that Company A has 100 shares, each with a price of $1. That would give it a market capitalisation of $100. But say the company's management wants to make its shares look more expensive.

So it reduces its overall share count to 50, which gives each share a new price of $2. The value of the overall company hasn't changed, only the price of its individual shares. That's what has just happened with the Sezzle share price.

Sezzle share price rises 38-fold as reverse stock split takes effect

In this company's case, the share count has been reduced by a factor of 38 to 1. So for existing investors, every 38 shares that they owned yesterday are now represented by one single, more expensive share today.

Sezzle has undergone this process, which was first flagged back in March, in order to increase the chances that the company can list on the US NASDAQ stock exchange. The company stated that in order to list on the NASDAQ Global Market, it must have a stock price above US$4.

This process is a complicated and lengthy one. Sezzle shares are actually currently trading under a 'deferred settlement' arrangement, so don't be surprised if you see some strange ticker codes like 'SZLDA' or 'SZLAM' on the Sezzle share price flying around this week. The whole process will only be finalised on 24 May next week.

So sorry to disappoint investors, but Sezzle has definitely not enjoyed a 3,050% gain today. Saying that, this ASX BNPL share has had a promising start to 2023, with the Sezzle share price up a healthy 56.1% year to date. However, the company is also down more than 94% from its all-time highs that we saw back in 2020.

The post Did the Sezzle share price really just leap 3,000%?! appeared first on The Motley Fool Australia.

Zip shares are currently up 7.29%, trading at 51.5 cents a share. For perspective, the S&P/ASX 200 (ASX: XJO) is 0.92% in the green today.

Let's take a look at what could be lifting the Zip share price.

What's going on?

Zip is not the only ASX buy now, pay later (BNPL) charging higher today. The Block Inc (ASX: SQ2) share price is 4.11% higher, while Sezzle Inc (ASX: SZL) shares are gaining 4.72%.

ASX BNPL shares appear to be following in the footsteps of their United States counterparts. Overnight, Affirm Holdings Inc (NASDAQ: AFRM) shares surged 13.02% on the NASDAQ, while Block's New York Stock Exchange listing Block Inc (NYSE: SQ) jumped 3.97%. Paypal Holdings Inc (NASDAQ: PYPL) shares also rose 4.79%.

ASX financial shares are having a good day on Wednesday, with the S&P/ASX 200 Financials Index (ASX: XFJ) up 1.15%.

This follows a surge in bank stocks overnight ahead of the US Federal Reserve's decision on interest rates, due on Wednesday US time (early Thursday morning Australian time). The US S&P 500 Index lifted 1.3%.

Standard Chartered head of G10 FX research Steve Englander, cited by Reuters, said:

The banking sector's near-death experience over the last two weeks is likely to make Fed officials more measured in their stance on the pace of hikes.

Meanwhile, Zip co-founder Peter Gray recently revealed the company has a "very strong platform" to accelerate, during an interview with my Foolish colleague James. He said, "We remain confident that we have sufficient liquidity and funding to see us through to group positive cash EBTDA during H1 FY24."

Broker Shaw and Partners has recently reiterated a buy rating on Zip shares with a $2.02 price target.

Zip share price snapshot

The Zip share price has fallen 66.3% in the last year. However, it has lifted 7.29% in the last week.

Zip has a market capitalisation of about $394 million based on the current share price.

The post Why is the Zip share price soaring 7% today? appeared first on The Motley Fool Australia.

Among the market's blazers are three ASX All Ords tech shares bouncing back from the fall-out of Silicon Valley Bank's (SVB) collapse.

On the flip side, two ASX All Ords tech shares are tumbling, despite only small exposures to SVB.

Let's take a look.

ASX All Ords tech shares bouncing back today

To re-cap, SVB was a commercial lender specialising in technology companies.

It was shut down by regulators in the US last Friday.

It's the biggest bank failure in the US since the global financial crisis (GFC).

Following the news, we've seen a roll-out of statements from ASX All Ords tech shares disclosing their exposure to SVB.

Of these, Life360 Inc (ASX: 360) shares are screaming 7.2% higher today to trade at $5.21 at the time of writing.

As my Fool colleague James reported last week, Life360 estimates its exposure is US$5.6 million in deposits. It also has US$75.4 million in shares of money market mutual funds invested in short-term, AAA-rated US Government treasury securities that are in SVB custodian accounts.

Life360 has updated shareholders today to confirm it "has regained access to its funds in SVB
accounts, and is transacting normally".

Sezzle Inc (ASX: SZL) shares are also up today. The Sezzle share price is currently 53.5 cents, up 0.94%.

The buy now, pay later (BNPL) company has US$1.2 million in deposits with SVB.

Sezzle shares may have extra momentum today due to the company's plans to list on the NASDAQ.

Finally, Xero Limited (ASX: XRO) shares are up 4% to $88.52 currently.

The accounting software company's exposure to SVB is approximately US$5 million.

The Xero share price has steadily risen since the company revealed plans to reduce costs and drive growth. Xero shares are up 12.6% since the announcement last week.

ASX All Ords tech shares that are struggling

Meantime, Siteminder Ltd (ASX: SDR) shares are down 2.42% today to $3.425 at the time of writing.

The accommodation e-commerce platform provider updated the market on its exposure to SVB today.

After transferring some of its cash holdings to other lenders upon hearing of SVB's collapse, SiteMinder was left with a cash exposure of A$10 million.

It also has a US$20 million revolving credit facility with SVB for contingency purposes that has not been drawn on since its initial public offering (IPO).

Today, the company said:

Following actions taken by the Federal Deposit Insurance Corporation and the Bank of England to fully protect SVB and SVBUK depositors, SiteMinder no longer expects any impact to its cash holdings.

SiteMinder has received confirmation from SVB that it will honour the Group's US$20m revolving credit facility.

SiteMinder is working with other banks to further broaden its banking arrangements.

Redbubble Ltd (ASX: RBL) shares are also in the red today, down 4.34 to 50.7 cents at the moment.

The arts online marketplace provider has an A$1.3 million exposure to SVB.

The Redbubble share price is down 66% over the past 12 months.

The post 3 ASX All Ords tech shares rebounding strongly from the SVB fallout (and 2 still tumbling) appeared first on The Motley Fool Australia.

At the time of writing, the buy now pay later (BNPL) provider's shares are up a sizeable 10% to 58.5 cents.

Why is the Sezzle share price racing higher?

Investors have been bidding this ASX All Ords share higher today after the company announced plans to list on the Nasdaq Global Market.

According to the release, Sezzle shares will continue to trade on the ASX All Ords concurrently despite this change.

However, one thing that will have to change is the Sezzle share price. Given the Nasdaq's minimum US$4.00 bid price, the company will undertake a reverse split if shareholders approve.

Sezzle hasn't revealed what its reverse split would be. But if it were a 20-1 reverse split, investors would see every 20 Sezzle shares they owned reduced to a single share and the price per share increased 20 times. There would be no change to the overall value of your holding.

In this example, it would mean the Sezzle share price increases to $11.70 from 58.5 cents.

The company also stressed that it isn't seeking to raise capital by listing on the Nasdaq. It does, however, hope that the move expands its investor base.

Sezzle's Chairman and CEO, Charlie Youakim, commented:

A listing on the Nasdaq is a natural evolution for Sezzle given the Company is already filing the necessary reports with the SEC. Although we are not seeking to raise capital as part of the Nasdaq listing, we are excited to expand the universe of potential investors to the United States.

The company intends to provide guidance to investors on the timing of the stockholder meeting, but anticipates completing everything no later than 30 September.

The post Guess which ASX All Ords share is planning a Nasdaq listing appeared first on The Motley Fool Australia.

Given that SVB had a big presence in the tech sector, a large number of ASX tech shares were customers and had funds in its bank accounts.

With the bank now falling into insolvency, it is unclear what will happen to these funds and what ramifications it will have on their operations and access to capital.

Though, the good news is that no ASX tech shares appear to have put all their eggs in one basket, underlying the importance of diversification and limiting their exposure to this collapse.

Here's a summary of tech shares with SVB exposure:

Bigtincan Holdings Ltd (ASX: BTH)

This sales enablement platform provider revealed that it has no material exposure to SVB.

Life360 Inc (ASX: 360)

This location technology company is a little more complex than others but estimates that its exposure is US$5.6 million. However, Life360 acknowledges that it also has US$75.4 million in shares of money market mutual funds invested in short-term, AAA-rated U.S. Government Treasury and Government Agency securities that are in SVB custodian accounts. It believes that these accounts were not co-mingled with SVB's assets.

Nitro Software Ltd (ASX: NTO)

This document productivity software company has US$12.2 million of its cash reserves held on deposit at SVB. This compares to its cash balance of US$28 million at the end of December. Positively, though, the company revealed that this development has not impacted its takeover approach from Potentia.

Redbubble Ltd (ASX: RBL)

This struggling ecommerce company estimates that its cash exposure to the SVB collapse is $1.3 million. However, it had a first-half closing cash balance of $97 million, so this is immaterial.

Sezzle Inc (ASX: SZL)

This buy now pay later provider had limited exposure to SVB. Just US$1.2 million of its US$68 million was held at the collapsed bank.

Siteminder Ltd (ASX: SDR)

This travel technology joined in on the bank run on Friday and "had success in transferring some of its cash holdings to other banking partners." However, cash holdings of up to A$10 million were not able to be transferred. The company also revealed that it has an undrawn US$20 million revolving credit facility with SVB. Nevertheless, it currently has A$58 million in cash outside SVB to fund its operations.

Xero Limited (ASX: XRO)

This cloud accounting platform provider revealed that its total exposure to SVB is approximately US$5 million. This represents less than 1% of its most recent cash and cash equivalents balance.

Latest development

In the last few minutes, the US government has announced that it will be stepping in.

According to CNBC, depositors at both SVB and Signature Bank in New York, which has also just closed, will have full access to their deposits on Monday.

A joint statement from Fed Chair Jerome Powell, Treasury Secretary Janet Yellen, and FDIC Chair Martin Gruenberg, said:

Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.

After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.

This news has given Wall Street a major lift and sent US futures hurtling higher.

The post These ASX tech shares have exposure to the Silicon Valley Bank collapse appeared first on The Motley Fool Australia.

While the All Ordinaries Index (ASX: XAO) is also down 0.61% as we head into the lunch hour, the BNPL companies are faring significantly worse.

The pay-by-instalment industry looks to be under pressure after the Australian Securities and Investments Commission (ASIC) came out in support of stringent new regulatory proposals.

At the time of writing, here's how these ASX BNPL shares are faring:

• Shares in Block Inc (ASX: SQ2), which acquired Afterpay in January last year, are down 7.62%
• Zip Co Ltd (ASX: ZIP) shares are down 3.33%
• Sezzle Inc (ASX: SZL) shares are down 3.8%

Here's what's happening.

What new rules is ASIC proposing?

ASX BNPL shares have been in limbo for some time now as to what types of lending standards they'll be held to.

Treasury is considering three options in a bid to protect consumers from taking on too much debt.

Yesterday, ASIC came out in favour of the most stringent of those three alternative proposals.

Should the government adopt ASIC's decision, ASX BNPL shares will be facing largely the same regulatory hurdles as credit card companies. That means they may need to dig into their customers' financial health before opening a line of interest-free credit.

That could prove an onerous burden in the current environment of high inflation and rising interest rates.

According to the ASIC report (courtesy of The Australian Financial Review):

Products with similar characteristics and the same purpose and function should be treated the same way in the regulatory framework.

Uniform regulation under the National Credit Act would bring a more consistent regulatory framework across all buy now, pay later providers and a standardised regime that could be enforced by ASIC.

Commenting on the development putting ASX BNPL shares under pressure today, analysts at Moody's Investors Service said (quoted by the AFR):

Regulation remains a continuing hurdle for fintechs In Australia, the once fast-growing BNPL sector is facing scrutiny as the government is considering a number of options to enhance the regulation of consumer credit.

More regulatory burdens will result for all BNPL providers, including Afterpay and Zip.

But no final decision has been made. Financial Services Minister Stephen Jones said the government was still working through the specifics of the pending regulations.

How have these ASX BNPL shares performed over a year?

With today's falls factored in, the ASX BNPL shares listed above have sunk even deeper into the red.

Here's how they've performed over the past 12 months:

The Block share price is down 24%:

The Zip share price is down 78%:

And the Sezzle share price is down 70%:

Whether buying these stocks at these prices represents grabbing a bargain or catching a falling knife remains to be seen.

With that said, should the government opt for a lighter regulatory approach, they could well enjoy a healthy bounce.

Stay tuned.

The post ASX BNPL shares deep in the red as ASIC turns up the regulatory heat appeared first on The Motley Fool Australia.

Stock in the embattled BNPL company last traded on 31 January, when it closed down 7% for the day. Over the previous 12 months, the Openpay share price had fallen 58%.

What happened with Openpay?

Like most ASX BNPL shares, Openpay stock rocketed higher in the early months of the market's meteoric pandemic rebound. But it failed to hold those late 2020 highs and came under increased pressure as interest rates began to ratchet higher in mid-2022.

As The Motley Fool reported last Friday, Openpay looked to be having difficulties accessing its $41 million unused finance facilities, leaving the loss-making company with a balance of $17 million. That's notably less than the $18 million of cash burn during the last reported quarter.

On Monday, Openpay revealed that receivers had been called in.

At the time of writing, the Openpay platform is not enabling any new purchases, and its shares remain suspended.

Are other ASX BNPL shares at risk of going down the same path?

The question investors are pondering now is, what's the outlook for companies operating in the same sector, with a similar business model?

For some insight into how the sector had been performing, here are the share price returns over the past 12 months from some of the top ASX BNPL names:

• Shares in Block Inc (ASX: SQ2), which acquired Afterpay in January last year, are down 16%
• Zip Co Ltd (ASX: ZIP) shares are down 78%
• Sezzle Inc (ASX: SZL) shares are down 72%
• Splitit Payments Ltd (ASX: SPT) shares are down 2.5%

The standouts here are Splitit and Block.

Both ASX BNPL shares are in the red over the full 12 months, but not nearly as deeply as the rest.

While I don't have a functional crystal ball, the stocks that have lost close to, or more than, three-quarters of their value over the past year certainly appear to be in danger of following Openpay into receivership.

The stronger performers may well shake off the past year's malaise to shine brightly once more.

What the industry insiders are saying

Splitit CEO Nandan Sheth says his company's business model differs from most in that it makes use of credit from its customer's credit cards. It also transacts with the vendors rather than the buyers.

As reported by The Australian, Sheth said he wasn't surprised to hear that the first ASX BNPL share had entered receivership.

"When you're lending to subprime consumers with a very high write-off rate – in some cases 300 to 400 basis points of write-offs – and a super-high customer acquisition cost along with marketing costs, your path to profitability is going to be challenged," he said.

He also pointed to difficulties in selling the long-term story of the stock to new investors, squeezing out access to new capital.

 "To be very candid, I'm not surprised that this is happening," Sheth added. "I think we will see more consolidation in this space and we're going to see buy now, pay later players focus on profitability."

ASX BNPL sector a huge boon to Aussie economy

But don't go counting the ASX BNPL sector out just yet.

According to the Australian Finance Industry Association (courtesy of The Australian), the buy now, pay later industry contributed north of $18 billion to Australia's GDP. AFIA estimates there are 6.3 million Aussie BNPL customers.

"BNPL is low cost and low risk, the average BNPL transaction value is $136," AFIA chief executive Diane Tate said. "Consumers are able to save in interest and fee costs (relative to other financial products) and surcharge savings. Delaying payment allows for more effective budgeting."

While he believes not all of the current ASX BNPL shares will endure, Sheth does envision a strong future for the sector.

"Buy now, pay later is ultimately going to be a model that is very successful. And I squarely believe that Splitit is not going to be the only company that's in the market," he said.

The post Are other ASX BNPL shares at risk of going down the same path as Openpay? appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are charging higher on Monday:

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is up 7% to $2.44. This morning, this uranium developer announced that it continues to make strong progress on all fronts at its Honeymoon project. Committed expenditure under the re-development program has now reached the halfway mark, totalling $55.1 million of the budgeted ~$105.4 million capital expenditure. Management notes that this major milestone means the project is running on time and on budget.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up a further 6.5% to $4.85. Analysts at Morgans have responded to the lithium miner's quarterly update by reiterating their add rating with an improved price target of $5.40. Morgans highlights that Pilbara Minerals' production and revenue were ahead of expectations.

Sezzle Inc (ASX: SZL)

The Sezzle share price is up over 18% to 64 cents. This has been driven by the release of a trading update from the buy now pay later (BNPL) provider this morning. Sezzle revealed that in December it achieved its second consecutive month of profitability. This was underpinned by a 15.7% year-over-year boost in revenue to $19.9 million in December.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 15% to 78.5 cents. Investors have been buying Zip's shares today in response to Sezzle's aforementioned update. This appears to have sparked hopes that Zip will be able to achieve profitability as planned in the near future.

The post Why Boss Energy, Pilbara Minerals, Sezzle, and Zip shares are charging higher appeared first on The Motley Fool Australia.

But one ASX BNPL company is leading the pack, with its shares opening a whopping 24% higher and currently up 17% in morning trade.

Any guesses which one?

If you said Sezzle Inc (ASX: SZL), go to the front of the class.

What did the ASX BNPL share report?

The Sezzle share price is rocketing following the release of the company's December business update.

The company reported that revenue grew strongly over the month, which helped it deliver its second consecutive month of profitability. That will certainly come as welcome news to investors after Sezzle struggled with hefty losses for most of 2022.

Sezzle reported a 15.7% year-on-year boost (and a 1.7% month-on-month lift) in revenue, which reached $19.9 million in December.

With two months of profitability, net income in 4Q 2022 was positive, at US$500,000. That compares to a net loss of US$25.9 million in 4Q 2021.

As for the balance sheet, the ASX BNPL share reported capital and liquidity of US$69.7 million cash on hand and US$65 million drawn on its US$100 million credit facility. Management stated it did not foresee any near-term capital needs.

Sezzle will report its fourth-quarter results on 27 February.

What did management say?

Commenting on the December results driving the ASX BNPL share sharply higher today, Sezzle CEO Charlie Youakim said:

In 2022, we set out on a mission to become profitable by year end… We are excited, as we have shown investors that we are clearly on the path to profitability with a well-capitalised balance sheet that does not require additional capital.

Looking ahead, Youakim added:

We are now working on additional initiatives to build upon what we have started and achieve positive Net Income and Adjusted EBTDA for 2023. We look forward to updating investors and the market on our initiatives as part of our fourth quarter conference call in late February.

How has the ASX BNPL share been tracking?

2023 is shaping up to be a different year for the embattled buy now, pay later stock.

With today's big leap factored in, the Sezzle share price is up 59% since the opening bell on 3 January.

But as you can see in the chart below, the company still has a way to go to recoup last year's losses. Over the past 12 months, the Sezzle share price remains down 70%.

The post Guess which ASX BNPL share just rocketed 24% on return to profitability appeared first on The Motley Fool Australia.

All Ordinaries Index (ASX: XAO) constituent Sezzle Inc (ASX: SZL) has officially posted what could be the sector's first monthly profit.

Here's how the smaller ASX BNPL share has performed compared to Zip as of late. As the chart below shows, Sezzle stock has dumped a whopping 82% over the last 12 months.

While that might appear disastrous, it's a better performance than that posted by Zip shares. They've plunged 85% in that time.

For comparison, the All Ordinaries Index has slipped 4% since this time last year.

Let's take a look at today's news from the smaller ASX BNPL company.

Another ASX BNPL share beats Zip to profitability

It's been a big year for ASX BNPL shares. Former favourite Afterpay was taken off the market, all but one member of Humm Group Ltd (ASX: HUM)'s board stormed out, and Zip proposed then cancelled a plan to acquire Sezzle.  

And with just eight trading days left on the year, the former takeover target has dropped another bombshell – its maiden monthly profit.

Sezzle posted US$200,000 of net income and US$1.5 million of adjusted earnings before tax, depreciation, and amortisation (EBTDA) for the month of November. That's up from respective average monthly losses of US$8.6 million and US$8.2 million in the fourth quarter of 2021.

"To say we are excited is an understatement," said Sezzle chair and CEO Charlie Youakim, continuing:

[T]his puts us in a strong position entering 2023.

We believe we are the first in our segment to reach profitability, but one month does not make a trend. Our goal for 2023 is to achieve positive net income and Adjusted EBTDA.

The smaller BNPL provider's total income came to $19.9 million in November – leaving its total income as a percentage of underlying merchant sales at a record 8.1%.

The Zip share price lifted 1.6% in late October on the back of the larger BNPL company's latest earnings. Its revenue reached $163.2 million over the three months ended 30 September – up 19% quarter-on-quarter.

Zip CEO Larry Diamond also recently told investors the company is expecting to operate in the EBTDA cash flow green by the first half of financial year 2024.

The post Guess which ASX BNPL company just achieved profitability for the first time (hint: not Zip) appeared first on The Motley Fool Australia.

Zip shares have surged 31% since market close on 10 November to the current price of 82 cents per share. For perspective, the S&P/ASX 200 Index (ASX: XJO) has climbed 2.6% in the same time frame.

So what is going on with this ASX buy now, pay later (BNPL) share?

What's happening with Zip?

Zip shares soared 18% on 11 November alone. Investors bought up Zip shares amid general sector strength.

This followed an incredible night on US markets, where the S&P 500 Index (SP: .INX) lifted 4.7% and the NASDAQ-100 (NASDAQ: NDX) soared 7.5% on better-than-expected inflation data.

Zip shares surged 12% on Wednesday and are currently up a further 4.5% today.

A positive business update from fellow BNPL share Sezzle Inc (ASX: SZL) may have boosted investor sentiment in the Zip share price on Wednesday. Sezzle reported it is making significant progress towards profitability.

Zip's over-the-counter market listing in the US (OTCMKTS: ZIZTF) soared 17% to 55 US cents overnight.

US retail sales lifted more than expected in October, Reuters reported today. This could be providing Zip shareholders with confidence today, given Zip's BNPL solution can be used for in-store payments.

Zip CEO and co-founder Larry Diamond moved to the US last month to take advantage of "significant opportunity" for the company in America. Diamond said:

It is important to be there to demonstrate what we have done in Australia. There is still a significant opportunity for fintech in the US, as US banks are asleep at the wheel.

Diamond also said in October he believes Zip can be the next Commonwealth Bank of Australia (ASX: CBA). He said there is "no reason why deposits and mortgages can't be inside Zip, if customers trust us".

Zip share price snapshot

The Zip share price has descended 86% in the past year, while it has fallen 81% in the year to date.

In comparison, the ASX 200 has shed more than 3% in the past year.

Zip has a market capitalisation of around $554 million based on the current share price.

The post Boom! Why has the Zip share price soared 31% in a week? appeared first on The Motley Fool Australia.