Sezzle shares fell 33.89% on Friday, wiping out about $2 billion in market value, even after the buy now, pay later company reported record second-quarter revenue of $149.7 million, up 51.7% year over year, and raised its full-year adjusted earnings guidance to $5.25 per diluted share. The sell-off was driven by the second-half revenue growth implied by the new outlook, which points to roughly 31% growth, a sharp deceleration from the first half's 40% pace and the just-reported quarter's 51.7%. Coming into the report, the stock had rallied about 260% from its 52-week low and was trading at roughly 34 times the newly raised earnings target, pricing in the higher growth rate. At Friday's close of $118.02, the valuation compressed to about 22 times guided earnings, which analysts described as a repricing rather than a verdict on the business.
Sezzle Inc.Stock plunges 34% despite record revenue and raised guidance, as implied second-half growth deceleration triggers repricing.
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