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Affirm Holdings Stock Falls Alongside Retailers: What's Going On?

Published 18/08/2022, 17:04
© Reuters. Affirm Holdings Stock Falls Alongside Retailers: What's Going On?
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Affirm Holdings Inc (NASDAQ: AFRM) shares are trading lower Thursday amid weakness in retail sentiment, which could impact buy now, pay later usage.

Affirm traded lower Wednesday after Target Corp (NYSE: NYSE:TGT) shares fell on weak earnings results. Target uses Affirm's buy now, pay later option.

  • TGT Revenue: $26.04 billion missed estimate of $26.09 billion
  • TGT EPS: 39 cents missed estimate of 73 cents
Target said inventory actions put significant pressure on its near-term profitability. The retailer announced a partnership with Affirm last year. Target customers have the option to split the total cost of purchases over $100 into simple monthly payments using the company's buy now, pay later technology.

Kohl's Corp (NYSE: NYSE:KSS) and TJX Companies Inc (NYSE: NYSE:TJX) also reported worse-than-expected earnings results this week.

See Also: Why Kohl's Shares Are Down Today

The overall weakness in retail could be signaling a potential slowdown in consumer spending, which could lead consumers to rely less on Affirm for payments.

Affirm is set to report its fiscal fourth-quarter financial results on Aug. 25.

AFRM Price Action: Affirm has a 52-week high of $102.21 and a 52-week low of $13.64.

The stock was down 3.48% at $36.09 at press time, according to Benzinga Pro.

Photo: courtesy of Affirm.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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