When Block (NYSE: SQ) acquired Afterpay in August 2021, the fintech giant was optimistic about topping off its core collection of payment services with the leader in a fast-growing new industry: buy now, pay later. But that growth hasn't materialized in the way Block hoped. The company ran up transaction, loan, and consumer receivables losses of $155 million in the fourth quarter of 2022 and more than $550 million for the full year, both more than doubling from 2021 and attributed in large part to buy now, pay later (BNPL).
Now, with a potential recession looming in the months ahead, investors have to be wondering how heavily Afterpay will weigh on Block's performance over the coming year.
Image source: Square.
Source Fool.com