Affirm's (NASDAQ: AFRM) stock price fell 90% in 2022 as its buy now, pay later (BNPL) business model was squeezed by inflation and rising interest rates. inflation forced consumers to rein in their discretionary spending, while rising rates popped Affirm's bubbly valuations and drove investors toward more conservative investments. By the end of 2022, Affirm's future seemed bleak because its growth was decelerating, it was deeply unprofitable, and a growing number of competitors were carving up the BNPL market.

Despite all those challenges, Affirm's stock has nearly doubled in value since the beginning of 2023. Let's see why Affirm's stock bounced back -- and if it's too late to chase that rally.

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Source Fool.com