Affirm Holdings Inc AFRM shares are trading lower in Monday's after-hours session after Upstart Holdings Inc 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.
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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