2023-03-28 14:02:27 ET
- Affirm Holdings ( NASDAQ: AFRM ) stock sank 11% in Tuesday midafternoon trading, its biggest decline since Feb.9, after Apple ( AAPL ) started its Pay Later service that directly competes with Affirm's financing products that allow consumers to pay for purchases in installments.
- Other companies that provide BNPL services didn't see a severe stock drop as BNPL are smaller parts of their businesses. PayPal Holdings ( PYPL ) fell 1.5% , and Block ( SQ ), which acquired Afterpay in early 2022 , slipped 0.9% .
- Another big competitor in the BNPL sector is Klarna ( KLAR ), a closely held company backed by SoftBank ( OTCPK:SFTBY ) ( OTCPK:SFTBF ).
- In the past year, Affirm ( AFRM ) stock has dropped 76% .
- Once mostly dependent on Peloton ( PTON ), Affirm ( AFRM ) has been adding new partners to diversify its base, most recently fitness equipment maker VersaClimber.
- Two SA contributors have opposing views on Affirm. Tradevestor sees the stock's decline as overdone , while Colin Tedards explains why the stock isn't cheap enough.
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Affirm Holdings stock swoons 11% after Apple rolls out Pay Later service