HUM - AFRM Stock Alert: What to Know as Regulatory Agency Targets Buy Now Pay Later Companies
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Affirm (NASDAQ:AFRM) stock is a hot topic among traders on Thursday following news that CFPB plans to target “buy-now, pay-later” companies.
CFPB doesn’t currently monitor companies such as Affirm, but plans to as the watchdog group sees them as a risk to consumers. This comes after buy-now, pay-later companies saw major growth during the pandemic.
To put that growth in perspective, these types of companies created 180 million loans worth $24.2 billion in 2021. That’s an over 200% increase when compared to 2019. With that type of interest, it’s no wonder AFRM, and other buy-now, pay-later companies, are catching the attention of the watchdog group.
Rohit Chopra, director of CFPB, said the following about the change to Reuters.
“In the U.S., we have generally had a separation between banking and commerce, but as big tech-style business practices are adopted in the payments and financial services arena, that separation can go out the door.”
How is This Affecting AFRM Stock?
Traders don’t seem too frenzied by today’s news. The company’s trading volume is currently sitting at more than 8 million shares as of this writing. That’s still a ways off from the daily average trading volume of 14.1 million shares for AFRM stock.
AFRM stock started off down in early Thursday morning trading but has largely recovered as of this writing. It’s also worth noting the stock is down 74.5% since the start of the year.
There’s more recent stock market news worth jumping into below!
We’ve got all of the latest stock market coverage traders need to know about today! For Thursday, that includes why Amtrak, Humana (NYSE:HUM), and Cryptyde (NASDAQ:TYDE) are in the news. You can catch up on all of this news from the following links!
More Thursday Stock Market News
- Why Did Amtrak Cancel (And Then Reschedule) So Many Trains?
- Humana (HUM) Stock Pops on Revised Guidance
- Why Is Cryptyde (TYDE) Stock Up Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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