Sezzle vs Afterpay share price: Black Friday sales compared
With the Black Friday and Cyber Monday sales events now over, we compare and contrast the impact they had on the Sezzle and Afterpay share prices.
Afterpay & Sezzle share prices compared
When Afterpay (ASX: APT) revealed the impact Black Friday and the slightly lesser known Cyber Monday (BF/CM) had on underlying sales – the market went slightly ballistic – pushing the fast-growing company’s stock up more than 5% in short-order.
Unsurprisingly then – when Sezzle (ASX: SZL) – an up-and-coming player in the buy now pay later (BNPL) space released their own set of impressive BF/CM sales figures today, its stock also rose, gaining 1.72% by mid-afternoon.
Here, the company reported a string of impressive achievements over the BF/CM period, including:
- Adding 36,000 Active Customers
- And increasing underlying merchant sales by 400% when compared to the year prior – with this metric reaching US$11.3m over four days
The majority of these sales were made on Sezzle’s mobile platform.
Speaking of these this short-term performance, Sezzle’s CEO Charlie Youakim said:
‘The strong Black Friday / Cyber Monday sales have provided a very favourable backdrop for Sezzle’s December Quarter. We enjoyed very robust new customer additions for just four days of sales, and the UMS of US$11.3m during this brief sales frenzy equates to more than 7% of Sezzle’s UMS in the entire last four quarters.’
Commenting on the favourable macro-consumer trends developing in North America, Mr Youakim
‘The decline in the use of credit cards and heavy utilization of mobile phones during the iconic BF/CM sales event provides further compelling evidence of the growing preference by consumers for alternative payment methods such as Sezzle.’
Looking at these favourable macro trends in more depth, it was also pointed out that in regard to online purchases, credit card usage has fallen significantly in the last year – from 66.4% to 54.3%, according to a PYMNTS survey. An understandably favourable headwind, according to Sezzle's CEO.
Like Sezzle, Afterpay also saw impressive growth across a number of key metrics during the BF/CM period, including:
- Adding 140,000 new customers in just two days,
- And seeing underlying sales soar by A$160m
Though in absolute terms, Afterpay’s metrics from the BF/CM period look to far outshine Sezzle’s, investors should remember that Afterpay is both a significantly larger company than Sezzle, and one which operates in more markets.
For example and on comparative terms, Afterpay is around 18 times larger than Sezzle – when looking at market capitalisation. As it always seemed the case however, there remains enough room in the space for a number of different players to thrive.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.