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."Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool