Part 7/12:
Analyzing the market cap of top BNPL companies reveals a volatile landscape. For instance, some firms like Affirm and Afterpay peaked around $40-$50 billion in 2021 but have since experienced significant fluctuations. Notably, Affirm’s market cap dropped from roughly $28 billion at its peak to about $2.8 billion in 2022, though it has since recovered somewhat.
Groupon’s story offers a cautionary tale—once valued at $6 billion but now worth less than half a billion dollars. Despite its downfall, Groupon’s revenue remains in the hundreds of millions annually. This pattern illustrates how fast valuations can collapse if companies cannot sustain their growth or adapt to market realities.