Affirm Holdings Shares Are Spiraling Lower: What's Moving The Buy Now, Pay Later Stock Today?

Affirm Holdings Inc AFRM shares are trading nearly 19% lower Wednesday after the company reported worse-than-expected earnings results and issued guidance below analyst estimates.

Affirm reported fiscal first-quarter revenue of $361.62 million, which beat average analyst estimates of $359.68 million, according to Benzinga Pro. The company reported a quarterly net loss of 86 cents per share, which missed average estimates for a loss of 83 cents per share. 

Affirm said it continues to "move deliberately" towards its ultimate goal of turning the company's adjusted operating income profitable by the end of fiscal 2023.

"The path to profitability is very clear: Revenue Less Transactions Costs must exceed all other costs of operating Affirm," the company said in a letter to shareholders.

Affirm expects full-year 2023 revenue to be between $1.6 billion and $1.675 billion versus average estimates of $1.71 billion. 

Analyst Assessment: Several analysts adjusted price targets on Affirm shares following the company's quarterly results.

• Deutsche Bank maintained Affirm with a Hold and lowered the price target from $22 to $14.
• Piper Sandler maintained Affirm with a Neutral and lowered the price target from $28 to $22.
• RBC Capital maintained Affirm with an Outperform and lowered the price target from $31 to $23.
• Morgan Stanley maintained Affirm with an Overweight and lowered the price target from $53 to $52.
• Credit Suisse maintained Affirm with a Neutral and lowered the price target from $27 to $21.
• Stephens & Co. maintained Affirm with an Underweight and lowered the price target from $18 to $15.

Related Link: Analyst Ratings for Affirm Holdings

Affirm offers a platform for digital and mobile first commerce, consisting of a point-of-sale payment solution, merchant commerce solutions and a consumer-focused app.

AFRM Price Action: Affirm is making new 52-week lows on Wednesday.

The stock was down 18.7% at $12.72 at the time of writing.

Photo: courtesy of Affirm.