Down 89%, Could This Tech Stock Be the Ultimate Bear Market Buy?
Affirm Holdings (NASDAQ: AFRM) is a provider of buy now, pay later (BNPL) loans, an installment-based consumer finance product that has surged in popularity over the last few years, particularly among young consumers. The model is designed to disrupt the age-old credit card business by using technology to offer quick financing at the time of purchase, with short-term durations and clear payment terms.
But soaring inflation and rising interest rates have rocked the U.S. economy in 2022, and investors grew worried that Affirm's loan book would deteriorate. They were half right; delinquencies have ticked higher but currently remain below pre-pandemic levels, which should help to ease concerns.
Nonetheless, Affirm stock has declined 89% from its all-time high. But with inflation seemingly past its peak -- based on October's softer consumer price index data -- Affirm might have an opportunity to enter a new phase of growth. Here's why the stock could be a great buy while the Nasdaq 100 technology index remains in bear territory.
Source Fool.com
