Holiday Spending Boom Ahead: 3 BNPL Stocks Poised for Gains

Core Viewpoint - The holiday shopping season is expected to be a significant opportunity for retailers and buy-now-pay-later (BNPL) services, despite inflation and high interest rates affecting consumer spending habits [1] Group 1: Affirm Holdings Inc. (AFRM) - Affirm is recognized as a pioneer in the BNPL sector, experiencing hypergrowth and partnerships with major retailers like Amazon, Apple, and Walmart [1] - The company has reported a revenue growth of 48% year-over-year, reaching $659.2 million, and is projected to become GAAP profitable by the end of fiscal year 2025 [2] - Analysts have upgraded Affirm's stock ratings ahead of the holiday season, with price targets raised, indicating confidence in its performance [3] Group 2: Block Inc. (SQ) - Block acquired the BNPL platform Afterpay for $29 billion, integrating it into its Cash App ecosystem, which has 57 million users as of June 2024 [5][6] - Afterpay's gross merchandise volume (GMV) grew 21% year-over-year to $7.75 billion in Block's second quarter of 2024, showcasing its growth potential [7] Group 3: Sezzle Inc. (SEZL) - Sezzle offers a unique BNPL model requiring a 25% down payment, with over 3.4 million active users and acceptance by more than 45,000 merchants [9] - The stock has surged 776% year-to-date, although trading volume remains low, indicating potential volatility [10] - Analysts have set a consensus price target of $174.00 for Sezzle, reflecting optimism about its future performance [11]