Sezzle Is Up 7,000% Since Bottoming in 2023. The Question Is Why

It’s the kind of headline that makes you do a double-take: a stock soaring more than 7,000% in less than two years. Usually, when that happens, the financial news cycle is abuzz with the why – a revolutionary product launch, a blockbuster acquisition, a stunning earnings turnaround, or perhaps a massive short squeeze. But then there’s the curious case of Sezzle Inc., the Buy Now, Pay Later (BNPL) provider, whose astronomical rise since bottoming out in 2023 has left many market watchers scratching their heads.

To put that number in perspective, a 7,000% gain means an initial $1,000 investment would now be worth $71,000. For most companies, such a move would be accompanied by a flurry of analyst upgrades, glowing investor presentations, and clear, undeniable catalysts. Yet, with Sezzle, the narrative is far less clear-cut. It’s almost as if the market decided to collectively hit the turbo button on this particular stock without sending out a memo explaining the rationale.

Let's rewind a bit. The BNPL sector, once the darling of fintech, faced a brutal reckoning in 2022 and early 2023. Rising interest rates, increased defaults as consumers tightened their belts, and looming regulatory scrutiny cast a long shadow over companies like Affirm, Klarna, and yes, Sezzle. Many of these stocks, including Sezzle, saw their valuations plummet from pandemic-era highs, some by as much as 90% or more. Sezzle, in particular, was trading at what many considered penny stock levels, reflecting deep skepticism about its survival in a more challenging economic climate.

So, what changed? The obvious answer might be a general rebound in growth and tech stocks, which certainly began to materialize in mid-2023. Investors started rotating back into riskier assets as inflation showed signs of cooling and the prospect of interest rate cuts emerged. This tide lifted many boats, but few, if any, saw a surge quite like Sezzle's. It's not simply a rebound; it's a hyper-growth explosion that seems to defy conventional wisdom.

One potential, albeit speculative, explanation could be its relatively small market capitalization and potentially low share float, making it more susceptible to outsized price movements driven by a concentrated buying effort or a short squeeze. In the world of micro-cap stocks, it doesn't always take a fundamental shift to ignite a parabolic run; sometimes, it's simply a supply-demand imbalance or a surge in retail investor interest. Could Sezzle have become a "meme stock" of sorts, albeit on a quieter scale than some of its more famous predecessors? It's certainly not out of the realm of possibility in today's market.

Another angle to consider is whether the market was simply massively undervaluing Sezzle at its 2023 bottom. Perhaps the company has quietly made significant strides in improving its unit economics, reducing loan losses, or expanding its merchant network in ways that aren't immediately obvious from top-line financial reports or widely disseminated news. However, for a 7,000% move, one would typically expect some concrete, publicly communicated evidence of such a dramatic turnaround in operational performance. While the company has shown signs of improving its financial health, particularly in managing credit risk and moving towards profitability, these improvements, while commendable, don't inherently explain such an extreme revaluation.

Ultimately, the Sezzle phenomenon remains a fascinating puzzle. Is it a genuine, albeit stealthy, turnaround story that the broader market is only now beginning to recognize? Is it a prime example of market inefficiency, where a small stock, perhaps overlooked by institutional investors, gets caught in a perfect storm of positive sentiment and technical buying pressure? Or is it simply a highly speculative bet that has paid off handsomely for those brave or lucky enough to hold on, a stark reminder of the inherent unpredictability of certain corners of the stock market?

For investors looking at Sezzle now, the question isn't just why it went up so much, but can it last? Without clear, fundamental drivers underpinning such an extreme surge, volatility is almost a given. The story of Sezzle since 2023 is less about a clear-cut business success and more about the enigmatic dance between market sentiment, supply-demand dynamics, and the often-unexplained magic—or madness—of the stock market.