Could Affirm Holdings Become the Next PayPal?

Affirm Holdings (NASDAQ: AFRM) was one of the hottest fintech stocks of 2021. The buy now, pay later (BNPL) provider had its initial public offering (IPO) at $49 in January 2021, opened at $90.90, and closed at an all-time high of $168.52 last November. But today, it trades at about $35 a share.

Affirm's stock plunged below its IPO price as investors fretted over its widening losses, rising leverage, and the inherent risks of BNPL services. The broader sell-off across higher-growth tech stocks, which was largely caused by inflation and rising interest rates, exacerbated that pain.

But despite that big setback, Affirm still has plenty of bullish backers. The average price target for the stock is still $64 on Wall Street, and only one of the 15 analysts who cover the stock rate it as a sell.

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Source Fool.com