Affirm shares plummet 21% after company releases financial results early

Technology

Affirm Holdings Inc. website home screen on a laptop computer in an arranged photograph taken in Little Falls, New Jersey.
Gabby Jones | Bloomberg | Getty Images

Affirm stock dropped as much as 26% on Thursday after the company reported second-quarter results ahead of schedule.

Here’s how the company did versus Refinitiv consensus expectations for the quarter ending in Dec.:

  • Loss per share: $0.57 per share
  • Revenue: $361 million vs. $328.8 million expected

Affirm stock was up about 10% during trading ahead of the company’s second-quarter earnings on Thursday.

The early release came after an apparently since-deleted tweet sent from the official Affirm Twitter account on Thursday morning, which included details about the company’s financial performance including that its sales rose by 77%.

The tweet suggested that Affirm would beat revenue expectations. Analysts polled by Refinitiv had expected a 61% rise.

Affirm is one of several hot “buy now, pay later” companies that offer short-term and low-interest loans to users when they buy consumer goods online.

For example, users buying a $1,450 Peloton bike can pay it off over 39 months with payments as low as $45 through Affirm. Last year, Affirm announced a partnership with Amazon to to be the sole non-credit card provider for financing for products the retail giant sells in the U.S.

Affirm went public in Jan. 2021 and is currently 33% lower than its IPO price. It was founded by Max Levchin, one of the original founders of PayPal.

Articles You May Like

CNN reporter calls moment during historic China protests ‘shocking’
50 migrants diagnosed with diphtheria in UK this year, with most in last two months
What ex-CIA director noticed about Trump’s response to DOJ investigation
Yellow weather warning as heavy rain and strikes set to cause travel disruption today
Palace aide resigns after asking charity boss ‘where in Africa are you from’