Why Sezzle Stock Crashed 40% in December
Shares of Sezzle (NASDAQ: SEZL) crashed 39.7% in December, according to data provided by S&P Global Market Intelligence. The decline had already begun in November when the company did a stock offering. But it picked up major steam after a blistering short report came out against this business on Dec. 18.
In 2024, Sezzle went from steep losses to big profits. The stock, consequently, was up by more than 2,000% for the year as of November. At that point, management decided to raise some cash by doing a stock offering. This took some of the wind out of its sails -- offering more shares can put downward pressure on the stock price.
However, the bigger hit came from Hindenburg Research in December. The lengthy report made many concerning claims. But I believe the statement investors need to consider most was the report's conclusion, which said, "Its model is simply not sustainable."
Source Fool.com
