Jim Cramer’s Lightning Round: 8 Stocks to Watch

1. Sezzle Inc. (NASDAQ:SEZL)

When a caller asked Cramer about Sezzle Inc. (NASDAQ:SEZL), he said:

“I’ve looked at this stock, it’s a straight-up payments play that reported so much better than expected quarters and I understand why it’s going up.”

Sezzle (NASDAQ:SEZL) is a technology-enabled payments company offering flexible installment solutions through its Sezzle Platform, along with services like Sezzle Virtual Card, Sezzle Anywhere, and Sezzle Premium, allowing consumers to shop and pay over time. In its recently reported third-quarter results, it saw substantial growth, driven by a significant increase in both subscriber numbers and consumer engagement. Total revenue for the quarter rose by 71.3% year-over-year, reaching $70.0 million.

This growth was further reflected in the company’s Underlying Merchant Sales (UMS), which grew by 40.6% year-over-year, hitting $659.9 million. This figure surpassed the previous high of $636.5 million, which had been recorded in the fourth quarter of 2023. The company’s improved performance was largely fueled by increased consumer activity, as evidenced by a rise in overall purchase frequency. Consumers made an average of 5.4 purchases in the third quarter of 2024, up from 4.1 in the same period of the previous year.

As of September 30, Sezzle (NASDAQ:SEZL) reported approximately 529,000 active subscribers using its Anywhere and Premium services in the United States and Canada. This increase in subscribers contributed significantly to the growth in revenue and consumer engagement. Additionally, the company reported a net income of $15.4 million for the quarter, which translates to net income per diluted share of $2.62, compared to just $0.23 per share for the same period in 2023. The net income represented 22.1% of total revenue, marking a significant 18.9% improvement from the prior year.

While we acknowledge the potential of Sezzle Inc. (NASDAQ:SEZL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SEZL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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