Why Sezzle and these ASX tech shares just hit record highs

Sezzle Inc (ASX:SZL) and these ASX tech shares have just hit record highs. Here's why they are flying high in 2020…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Although the market was out of form last week, it didn't stop some ASX shares from charging higher.

In fact, some even managed to climb to new highs on Friday despite the market weakness.

Three ASX shares that achieved this milestone are listed below. Here's why they are on a high right now:

Damstra Holdings Ltd (ASX: DTC)

The Damstra share price hit a record high of $1.50 on Friday. Investors were buying the integrated workplace management solutions provider's shares last week after it announced a takeover offer for Vault Intelligence Ltd (ASX: VLT). Management notes that the two companies have highly complementary product sets and respective client bases. This is expected to lead to synergies of $4 million within 12 months of the acquisition. And on the top line, the merged group will have pro-forma revenue and other income of $33 million to $35 million.

Sezzle Inc (ASX: SZL)

The Sezzle share price rocketed to a record high of $8.25 last week before being placed into a trading halt. The catalyst for this was the buy now pay later provider's second quarter update. During the quarter, Sezzle's underlying merchant sales came in at US$188 million (A$272.3 million). This represents a 58% quarter on quarter increase and a 349% year on year increase. This strong performance was driven by stellar growth in active customers, active merchants, and repeat usage. Late in the week Sezzle took advantage of its share price rise to undertake a $86.3 million (US$60 million) capital raising. These funds will be used to accelerate its growth strategy and strengthen its balance sheet.

Xero Limited (ASX: XRO)

The Xero share price continued its positive run and hit a record high of $94.31 on Friday. The business and accounting software provider's shares have been in demand with investors this year thanks to its strong FY 2020 result. During the 12 months, Xero posted a 30% increase in operating revenue to NZ$718.2 million and a 29% jump in annualised monthly recurring revenue to NZ$820.6 million. Based on its strong share price form since the release, investors appear confident there will be more of the same over the coming years.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Damstra Holdings Ltd and Xero. The Motley Fool Australia has recommended Damstra Holdings Ltd and Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Record Highs

Concept image of a man in a suit with his chest on fire.
Record Highs

How long can the CBA share price keep this up?

Australia's biggest bank is running hot. Does it make any sense?

Read more »

Four young friends on a road trip smile and laugh as they sit on roof of their car.
ETFs

4 popular ASX tech ETFs smashing new all-time highs today

Do you own any of these lucky ETFs?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Record Highs

The multi-billion-dollar ASX tech share hitting new highs on broker bullishness

This ASX tech share darling is up 216% in the year to date and just reset its record price.

Read more »

A cloud with a blue arrow pointing upwards through its middle symbolising a rising asx share price
Record Highs

Xero and 2 other ASX tech shares cracking all-time highs on Thursday

The price peaks follow a significant lift in the NASDAQ overnight following Republican Donald Trump's US election victory.

Read more »

a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources
ETFs

7 hugely popular ASX ETFs smashing new record highs on Wednesday

Do you own any of these lucky ASX ETFs?

Read more »

Man smiling at a laptop because of a rising share price.
Record Highs

This ASX 200 share is breaking records amid a massive $300 million investment

This ASX 200 share made a triumphant return to trading today.

Read more »

A woman on holiday stands with her arms outstretched joyously in an aeroplane cabin.
Travel Shares

Big ASX news: Qantas share price hits record high

Qantas is defying the market to fly to new heights this Wednesday...

Read more »

Three Archer Materials scientists wearing white coats and blue gloves dance together in their lab after making a discovery
Record Highs

Superstar ASX 200 healthcare stock snags record high amid $32 million deal

The second multi-million-dollar deal in less than two weeks.

Read more »