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Investors who bought in at the top of a surge in "buy now, pay later" stocks are nursing hefty losses and putting their faith in industry consolidation to revive battered prices. (Source photos by Reuters, Getty Images and courtesy of Afterpay) 
Market Spotlight

'Buy now, pay later' companies lose their stock market luster

Shares tank as investors reevaluate new lending sector

PRASHANT MEHRA, Contributing writer | Australia

SYDNEY -- The prospect of rising global interest rates, mounting losses and greater regulatory scrutiny has wiped tens of billions of dollars from the market value of "buy now, pay later" companies, in a stark reversal of one of the pandemic's hottest investment trends.

The companies, which offer credit to consumers for small purchases, soared in popularity during coronavirus lockdown as people splurged online on new clothes, shoes and home furnishings.

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