Affirm Holdings (NASDAQ: AFRM) lost more than 50% of its value over the past two months as rising interest rates caused investors to dump their pricier, more speculative, and unprofitable growth stocks.
Unfortunately for Affirm's investors, the "buy now, pay later" (BNPL) services provider checked all three boxes. It was valued at 36 times its estimated fiscal 2022 sales when it hit its all-time high last November, its long-term growth relies on its unproven ability to disrupt traditional credit card companies, and analysts don't expect it to turn a profit anytime soon.
But now that Affirm's stock has been cut in half, is it time to take a contrarian view? Let's review the bear and bull cases to find out.
Source Fool.com