Better Buy: SoFi or Affirm?
Last year, financial technology, or fintech, stocks were all the rage. Many fintech companies saw their stocks shoot up and reach astronomical valuations. But this year, as interest rates have surged, investors have gotten a lot more selective about these stocks. In fact, the market this year has been brutal for most fintech stocks.
Two popular ones that fall into this category are digital-bank SoFi (NASDAQ: SOFI) and buy now, pay later (BNPL) company Affirm (NASDAQ: AFRM). SoFi's stock is down more than 64% this year, while Affirm's stock is down more than 78% during the same time period. These declines create a potentially interesting entry point. Let's take a look at which is the better long-term buy.
SoFi is a digital bank that seeks to provide all financial services for high-income earners, typically those who make more than $100,000 per year. Most consumers get financial products from at least several different banks, but SoFi wants to be the one-stop shop and meet all of the financial needs of its target-customer base.
Source Fool.com
