- Affirm Holdings ( NASDAQ: AFRM ) stock climbed 13.5% on Friday as Buy Now, Pay Later-related stocks caught a bid in the wake of a broader stock market rally bolstered by October's slower inflation reading earlier this week.
- Last month's cooler-than-expected inflation print fueled increased bets that the Federal Reserve will implement smaller interest-rate increases. Traders have largely priced in a 50-basis point hike at the December meeting compared with the central bank's 75-bp moves at its prior four meetings.
- Shares of Affirm ( AFRM ), which provides BNPL financing for consumers, saw the biggest gains among peers, as seen in this chart .
- The Quant system, though, warned investors in mid-October that AFRM stock was at risk of performing badly due to inferior profitability and decelerating momentum. Since that call, the stock has retreated 20.1% .
- SA contributor Juxtaposed Ideas justified Affirm stock with a Neutral rating as the company's funding costs remain under pressure amid a rising interest rate environment .
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Why did Affirm Holdings stock boom today?