I am a bit surprised with today’s price action - How does it make any sense that Sezzle is now in the red after being up about 5% this morning?
The report was ok but not explosive (Where you consider all the media attention Sezzle has received in the US along with general BNPL activity).
I am impressed with the sizeable reduction in bad debts (from 3.4% to 2.3%). However, appears the aggressive focus here is coming at the cost of better growth numbers. (As someone eluded previously, it’s a catch 22 and finding the right balance is key).
My other bigger concern, the chart is now following a downtrend channel which appears to have started in early July around $9.75) - See below.
I honestly thought after hitting a low of $4.93 and bouncing back to $6.37 it would have consolidated from $6.00 to $6.30 before breaking up again. Instead, it’s done the opposite and continued in the said downtrend channel formation and unless it breaks out of this channel (In my honest opinion, it may go lower).
I hope I am wrong.
