The Sezzle Inc (ASX: SZL) share price has been among the best performers on the Australian share market on Wednesday.
In afternoon trade the buy now pay later provider's shares are up 8% to $7.21.
Why is the Sezzle share price zooming higher?
Investors have been buying Sezzle and other tech shares today after the Nasdaq continued its rebound overnight.
This appears to have sparked hopes that the tech rout is finally over and that tech shares will now commence their recovery.
And given how hard the Sezzle share price has fallen in recent weeks, I can't say I'm surprised to see it rebound stronger than others. Since peaking at $11.83 just under three weeks ago, the Sezzle share price has lost around 40% of its value.
However, a rebound back to its record high may be out of the question in the near term. This is because the recent weakness hasn't just been driven by the Nasdaq tech selloff.
Also weighing on Sezzle's shares was news that PayPal will be launching a buy now pay later offering in the $5 trillion United States market in the final quarter of the year.
There are concerns that its entry could weigh on the growth of smaller players like Sezzle and the Zip Co Ltd (ASX: Z1P) owned QuadPay business.
Should you buy Sezzle shares?
Given the size of the U.S. market, Sezzle wouldn't have to dominate it to generate significant revenues. It also has plans to expand into new geographic markets in the future to support its growth.
In light of this, I think the Sezzle share price could still go higher from here. However, it will need to prove that it can continue its growth alongside a PayPal offering in 2021 before I'll consider it as an investment.
For now, I would class it as a hold and sooner buy larger rival Afterpay Ltd (ASX: APT). Especially given the latter's very strong market position and global expansion plans.
