Affirm (NASDAQ: AFRM) got off to a rocky start after its initial public offering (IPO) a couple of years ago. However, 2023 has been a much better year for shareholders, with the stock gaining more than 75% since January. The buy now, pay later (BNPL) company continues to benefit from consumer preferences for its services along with a recent partnership with Amazon. Here's what you should know before buying the stock.

Affirm allows consumers to split payment for a purchase into installments. BNPL has become popular in recent years, as customers prefer the straightforward approval process and ease of use. According to the Consumer Financial Protection Bureau, the number of BNPL loans originated in the U.S. from the top five companies grew 970% from 2019 to 2021. 

Affirm's growth over the years has been a bit of a mixed bag. From 2020 to its most recent 2023 earnings (for the fiscal year ended June 30), Affirm's net revenue grew 212% to $1.6 billion. However, net losses for the company continue to mount. In 2020, the BNPL company had a net loss of $126 million. This year, its net loss was $985 million.

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Source Fool.com