Affirm Stock: Buy, Sell, or Hold After Falling 42% in January?
The buy now, pay later industry took off in 2021. Consumers have embraced the option to go shopping and pay off their purchases in a fixed number of (sometimes) zero-interest payments. Affirm Holdings (NASDAQ: AFRM) is among the leading companies in the buy now, pay later (BNPL) space -- it went public in Jan. 2021 at $49 per share.
The stock surged as high as $176 in November before steadily plummeting, including a 42% decline year to date. Why have investors turned their backs on the stock, and should you buy, sell, or hold it?
Affirm's downfall seems driven by a few factors. First, high inflation and the potential for rising interest rates have spooked the market overall, resulting in significant downward pressure for most growth and technology stocks. In the Nasdaq, for example, less than one-fifth of the more than 2,500 stocks in the index are above their 200-day moving average, a sign that market sentiment is overwhelmingly negative.
Source Fool.com
