Sezzle

Is this growth stock a beautiful sizzling steak, or a flat beer that's been left out too long.

I love BuyNow-PayLater companies. Especially when I get a 12+ months free carry and can keep the cash in my savings account, netting me more in savings than any offsetting credit card points. Over the past half decade there has been a proliferation of new BNPL companies, and an explosion of ‘buttons’. As in, companies you can use to buy a product. Many of these companies have easy avenue to loan growth, offer better terms than the other buttons on the screen. This creates explosive stock movements, in both directions. Look at the price action of Affirm and UpStart. Rips higher, then R.I.P. longs.

This makes the BNPL sector difficult to value and keep in your book long term. Outside of Synchrony Financial, none of the other major BNPL companies have made new highs since 2022. PayPal, the above mentioned Affirm and Upstart, and Ally have all struggled as more competitors have come onto the field.

In today’s missive we’re going to talk about one of those newer competitors, Sezzle Inc. (SEZL) and try to determine if its stock is as exciting as a day old memorial day weekend beer is flat, or if its a hot off the grill sizzling steak.