Sezzle (SEZL) is a financial technology company that provides payment options. Customers may buy now and pay later. This is similar to that offered by PayPal (PYPL) and Affirm (AFRM).
SEZL stock, which has a modest market capitalization of $1.4 billion, jumped by 72.27% last Friday. The firm posted a non-GAAP EPS of $2.92 on revenue of $38.5 million. The adjusted EBITDA added back a $2.16 million income tax expense and $1.456 million in equity and incentive-based compensation.
Cautious investors should consider owning Sezzle, should the stock price pull back. Valuations are excessive, with P/E GAAP at 26.4 times. This is 82% above the sector median P/E of 14.5 times.
AppLovin (APP) gained 81.3% last week, valuing the company at an $82.73 billion market capitalization. The firm recorded a 38.8% Y/Y rise in revenue, to $1.2 billion. Analysts rushed to raise the price target after the rally. For example, Oppenheimer set a $260 price target.
AppLovin avoided severe risks when it tried to buy Unity Software (U). While U stock peaked at over $180 in 2022 and closed at $20.50, APP stock closed at an all-time high. Short-sellers who bet against this company with an 11.12% short float will need to close their position. This will create a short squeeze and push APP stock higher.