Investors are focusing on inflation and rising interest rates, which have rippled across the economy. One concern is that inflation weighs on consumers, who could cut spending on goods and services -- reducing opportunities for BNPL companies. Another concern is that consumers use BNPL loans more to pay for things without knowing how much debt they are taking on.
Investing in stocks comes with the risk that the share price will fall. Anyone who held Affirm Holdings, Inc...
Shares of several high-growth fintech stocks rebounded Tuesday after a brutal sell-off last week that was triggered by the Federal Reserve's decision to hike its benchmark interest rate by 75 basis points. Shares of the "buy now pay later" (BNPL) company Affirm (NASDAQ: AFRM) had risen by roughly 12.6% as of 11:11 a.m. ET Tuesday. Artificial intelligence-powered lending tech specialist Upstart (NASDAQ: UPST) was nearly 12% higher, and shares of Brazilian digital bank Nu Holdings (NYSE: NU) were up by more than 13%.