Provided by ERShares
Eva Ados, COO and Chief Investment Strategist at ERShares, recently appeared on CNBC’s Power Lunch–Trading Nation to discuss two ‘Buy Now, Pay Later’ (BNPL) stocks that could get a boost from the sales funnel provided by the holiday shopping of this year.
Black Friday 2021
Black Friday is expected to score big with soaring sales this Holiday season. Due to the limited availability of products, shoppers have a greater incentive to buy items early. Hence, the ‘Buy Now Pay Later’ will be a beneficiary.
Why ‘Buy Now Pay Later’?
“The rise of ‘BNPL’ options could give way to Affirm (AFRM) and Square (SQ) getting a boost,” Ados told CNBC’s “Trading Nation” earlier this week.
Many shoppers, including 2/3 of millennials, do not have credit cards or sufficient cash. In addition, many young consumers have indicated an aversion to traditional banking and are the main drivers of growth in alternative-digital banking solutions, including the ‘BNPL’ option.
Top Two ‘BNPL’ Stock Picks
“From Affirm’s exclusive deal with Amazon to Square’s impending acquisition of Australian fintech company AfterPay, both have catalysts in place to take them higher during the shopping rush,” Ados said.
Affirm has indicated accurate data about their effect on retails; their ‘BNPL’ service led to a jump in retail sales shortly after. Their exclusive contract with Amazon solidifies their position as a market leader.
Square is also growing dramatically and consolidating the ‘BNPL’ market after acquiring the Australian company, Afterpay. Its payment platform can easily integrate a ‘BNPL’ company.
Ados highlights that these current ‘BNPL’ players will continue to innovate and partner with critical retail players to reap enormous benefits beyond its existing user base.
Credit to CNBC Trading Nation
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