Affirm Holdings Inc (NASDAQ: AFRM) shares are trading lower in Monday's after-hours session after Upstart (NASDAQ:UPST) Holdings Inc (NASDAQ: UPST) shares tanked on weak financial results and soft guidance.
Upstart reported second-quarter revenue of $228.16 million, which missed the estimate of $241.63 million, according to data from Benzinga Pro. The company reported quarterly earnings of 1 cent per share, which missed the estimate of 10 cents per share.
Upstart said it expects third-quarter revenue to be approximately $170 million versus the estimate of $248.92 million.
"This quarter's results are disappointing and reflect a difficult macroeconomic environment that led to funding constraints in our marketplace," said Dave Girouard, co-founder and CEO of Upstart.
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Both Upstart and Affirm offer lending services. Upstart operates an AI lending platform partnering with banks and credit unions to expand access to affordable credit. Affirm offers a platform for digital and mobile-first commerce.
Affirm is set to announce its fiscal fourth-quarter financial results on Aug. 25.
AFRM Price Action: Affirm shares traded significantly lower on Upstart's earnings release before staging a reversal.
The stock was down 3.30% in after-hours at $33.75 at press time.
Photo: courtesy of Affirm.
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