AI Stock Surges Over 2,200% Post Stock Split, Appearing Modestly Priced
After a 34.86% plunge in Sezzle's (SEZL) stock price following its second-quarter earnings report, analysts remain optimistic about the fintech company's future. Despite the recent dip, Sezzle's stock still shows a 1-year return of over 300%, indicating strong investor interest over the medium term[1].
The optimistic outlook is supported by Sezzle's impressive financial performance. The company reported a 70.14% year-over-year increase in revenues, reaching $271.13 million, and earnings more than doubling, with a 1006.26% increase[2]. Sezzle's adjusted net income grew by 92% in the most recent quarter compared to the same period in 2024.
Sezzle, a buy-now-pay-later fintech company, is expected to produce at least $170 million in adjusted EBITDA for the full year[3]. The company's stock trades with a multiple of less than 24 times forward earnings expectations, suggesting it could be undervalued[2].
However, it's essential to understand that investing in Sezzle is not a sure thing. The stock is known for its volatility, with a high beta of 9.15, making it quite sensitive to market movements[2]. Despite this, Sezzle's board authorized a $50 million share repurchase plan, demonstrating management's confidence in the company's future[2].
The BNPL market in the United States, which was $257 billion in 2024, still represents a massive growth opportunity[4]. Buy-now-pay-later and point-of-sale financing make up just 2% of total commerce transaction value in the United States[4]. Sezzle's annualized GMV is just 1.4% of the overall BNPL market, indicating room for expansion.
Analysts maintain a strong buy rating with an average 12-month price target of approximately $124.33, suggesting a potential upside of nearly 30% from current levels[2]. Sezzle's management expects 60%-65% year-over-year revenue growth[3].
Investors appear to be viewing the current dip as a potential buying opportunity given the robust fundamentals and strong buy analyst recommendations[2][5]. However, high volatility means risk remains elevated.
In summary, Sezzle's second-quarter earnings and recent plunge have led to near-term caution in the market, but analyst forecasts project approximately 30% upside with a strong buy rating, driven by impressive revenue growth and profitability gains[2][5]. Despite the volatility, Sezzle's strong financial performance and growth potential make it an attractive investment opportunity for those willing to accept the risks.
[1] Sezzle Stock Plunges More Than 30% After Second-Quarter Earnings Report. (2025, August 22). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3819668-sezzle-stock-plunges-more-than-30-after-second-quarter-earnings-report
[2] Sezzle Q2 Earnings: Here's What to Know. (2025, August 11). The Motley Fool. Retrieved from https://www.fool.com/investing/2025/08/11/sezzle-q2-earnings-heres-whats-to-know/
[3] Sezzle's Q2 Earnings: What Investors Need to Know. (2025, August 11). InvestorPlace. Retrieved from https://investorplace.com/2025/08/sezzles-q2-earnings-what-investors-need-to-know/
[4] The Buy Now, Pay Later Boom: Sezzle Stock. (2025, July 26). The Motley Fool. Retrieved from https://www.fool.com/investing/2025/07/26/the-buy-now-pay-later-boom-sezzle-stock/
[5] Sezzle Stock: What to Know Before the Q2 Earnings Report. (2025, August 10). The Motley Fool. Retrieved from https://www.fool.com/investing/2025/08/10/sezzle-stock-what-to-know-before-the-q2-earnings-report/
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