Business

According to Jim Cramer, it will be even more painful for investors who buy now and play later.

CNBC’s Jim Cramer told investors Wednesday that if they own a buy now and pay stock later, they should support themselves for more damage to their portfolio. I warned.

“These stocks couldn’t have been so valuable in the first place. Their business model was much more attractive when interest rates were incredibly low, but it’s still unclear if they will work in a more normal environment. No, “he said.Flirt“The host said.

“Even if it wasn’t at the time, revenue is important. Evaluation is important. Economic conditions are important …. That’s what we learned this year and it’s a pain if we have exposure to fintech. I don’t. “I think the pain is inevitably over.”

Buy Now, Postpaid Service, or BNPL, Soaring popularity during a pandemic As consumers move to online shopping. The BNPL enterprise space has since grown with enterprises such as: Affirm, block, UPSTART, PayPal When Apple In fierce competition.

Kramer said the pandemic boost to BNPL was a long time ago, especially as Wall Street was worried about the impending recession and the Federal Reserve was fighting to beat inflation.

“The moment the Federal Reserve declared war on inflation in November, Wall Street opposed growth, including the entire financial technology building,” he said.

“In more diverse payment plays like Block and PayPal, there was also exposure to cryptocurrency trading, which now looks like this:” Obstacles for themHe added.

Kramer also pointed out that BNPL stocks are well below their former levels and it is unclear if they will recover.

“It was a terrible decline.” He said.

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According to Jim Cramer, it will be even more painful for investors who buy now and play later.

Source link According to Jim Cramer, it will be even more painful for investors who buy now and play later.

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