This Stock-Split Stock Is Up More Than 800% in the Last Year. Is It a Still a Buy?

Interestingly, What's fascinating this is By now, investors are familiar with the big winners over the last couple of years, Nvidia and Palantir, but there's one little-known buy-now, pay-later (BNPL) stock that has crushed the returns of both of those artificial intelligence (AI) stocks

The company also recently rewarded investors with a 6-for-1 stock split in March

That doesn't change any fundamentals the, but it is a reflection of management's confidence in future growth, and investors tend to respond positively to stock splits

Image source: Getty Images (this bears monitoring), given the current landscape

What is Sezzle (which is quite significant)

At the same time, After moving on from Passport, Youakim decided to target a larger corner of the payments sector, setting his sights on retail

Moreover, Since it came after larger BNPL companies Afterpay (now owned by Block), Affirm, and Klarna were well-established, Sezzle has had to be scrappy to get to where it is today

The company initially raised capital and went public in Australia before eventually going public through a direct listing in the U

It then delisted its Australian listing

Conversely, In an interview with The Motley Fool, Youakim said the company, which recently filed a lawsuit against Shopify, has overcome a great deal of adversity in growing to where it is today, given the current landscape

Furthermore, He said Shopify "was basically blocking us on its site" when the e-commerce platform made up 80% of revenue

Moreover, In fact, Sezzle's revenue growth has accelerated for five quarters in a row, and its fits have also soared

However, Sezzle's subscription ducts have helped drive growth, including Sezzle Anywhere, which allows users to use Sezzle virtually anywhere Visa is accepted (quite telling), in today's financial world

Additionally, This demonstrates that company has launched other ducts as well, auto-couponing, which automatically finds coupons the customer can use, and its Sezzle Up feature allows users to establish a credit history with Sezzle, considering recent developments

On the other hand, Most of its users are young adults and have low to medium income levels, given the current landscape

Additionally, Additionally, the company has a rewards gram called payment streaks, which gives customers points every time they make an on-time payment

Sezzle has also managed credit risks by cutting off customers when they miss payments, essentially preventing them from continuing to borrow and spend on the platform

That's a meaningful difference from credit cards that allow users to rack up debt they often struggle to pay, given current economic conditions

On the other hand, Sezzle stock exploded ing the company's first-quarter report, though the stock has cooled off this month as other high-flying growth stocks have pulled back in what could be a market rotation, in today's market environment

There's a long runway of growth ahead for Sezzle and other BNPL operators if they can continue to take market from credit and debit cards in the massive payments market

Moreover, The company seems to have found the right mix of user-friendly duct features and a lean model capable of dering wide fit margins (which is quite significant), given the current landscape

Investors should expect the company's revenue growth to moderate, but it looks a good bet to outperform over the long term

He envisions it becoming something of a super-app with more banking services

Moreover, That's a bold goal, but the company doesn't have to get to that level for it to be successful

Additionally, At its current valuation, investors seem to be betting on its growth to moderate soon

If Sezzle can continue to outgrow its peers, however, the stock should be a winner (noteworthy indeed)

Nevertheless, Jeremy Bowman has positions in Nvidia, Shopify, and Visa

The Motley Fool has positions in and recommends Block, Nvidia, Palantir nologies, Sezzle, Shopify, and Visa

The Motley Fool has a disclosure policy, in light of current trends.