With Millions Using BNPL, Bet on this Stock 

Keep an eye on buy now, pay later (BNPL) stock, like Affirm Holdings (AFRM).

For one, Goldman Sachs just initiated coverage of the stock with a buy rating with a price target of $42 a share. “We view AFRM as the leading provider of modern credit solutions for consumers, with a diverse portfolio of products for point of sale financing, and everyday spending,” said the firm, as quoted by Seeking Alpha. 

Two, Americans are spending billions of dollars with BNPL – especially online.

As noted by Fortune, “U.S. consumers spent $331.6 billion shopping online in the first four months of 2024 alone, according to a report released by Adobe Analytics. That’s 7% more than a year ago, and importantly, the online spending was driven by new demand, not higher prices. Adobe’s researchers explained that e-commerce prices actually dropped 5.6% from a year ago in April. That means if their figures were inflation-adjusted, the percentage growth figure for Americans’ online spending would have been even higher.”

Millions of Americans are also using BNPL to buy groceries.

In fact, thanks to inflation, about 15 million people, or 6.5% of the U.S. population is using BNPL. And according to the Federal Reserve Bank of New York, people with a credit score of under 620 were three times as likely to use BNPL multiple times a year.

With the trend showing no signs of cooling, do keep an eye on stocks like Affirm Holdings.