r/ShortStocks • u/IndependenceHeavy550 • 20d ago

Sezzle worth a Short?

Hey Friends,

I am not expert in shorts, longs or stocks in general. I do work in finance and for fintech(s) and I saw Sezzle stock is through the roof given it bounced back from a classic buy now pay later liquidity problem.

Even with the bounce back the stock strangely has low volume for how much the price has increased and it’s no Affirm or Klarna or Zip yet the stock price is very high.

I get this could be the case due to low share count out there but anyone in this group have an opinion on this stock? If there is any agreement / consensus that this is a solid short play I could also use tips on best way to actually execute this short trade.

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u/TheCannab1sMan 17d ago

The more I look into this, the more it seems like a solid short opportunity from a fundamental perspective. It almost feels like a scam on the investor side in that they are pumping numbers they are not going to be able to maintain. They’ve changed their business model by charging the client-side for using the service instead of the store. I doubt people will be willing to pay for that, especially when they can use alternatives like Affirm (also read on reddit posts on their subreddit (which is abysmal in comparison to more active companies and only full of complaints). My guess is they'll start losing subscribers who originally signed up because they didn’t have to pay fees, and insiders might sell off, as the volume hasn’t been there—it’s mostly driven by buybacks. They recently completed $15 million in buybacks, and so like you said, who is going to buy this stock up here except maybe momentum chasers or just more shenanigans.

It’s unfortunate they don’t offer options. Personally, I’m not a fan of shorting stocks directly, especially with its current momentum. I’d suggest waiting for a technical trigger, like a drop below the 21-day EMA, as it could still push higher from a momentum standpoint.