Affirm (AFRM) Stock Slides Amid Hawkish Fed Commentary

Benzinga

Affirm Holdings shares fell 3.6% to $73.15 after the Fed cut rates by 25 basis points but signaled uncertainty about further easing. Higher borrowing costs continue to challenge Affirm’s Buy Now, Pay Later business model as investors await its November 6th earnings report.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02A firm holding shares fell on Wednesday amid a broader market decline

00:05following the Federal Reserve's latest policy announcement, according to Benzinga.

00:09Fed cut its benchmark rate by 25 basis points to 3.75% to 4%,

00:14but signaled a division within the committee about further easing.

00:17Chair Jerome Powell comments that another December rate cut

00:20is not a foregone conclusion, unsettled investors.

00:23Elevated rates pose a challenge for a firm's buy-now-pay-later model,

00:26as higher borrowing costs, compressor margins, and slow consumer demand.

00:31Investors now await the company's quarterly earnings on November 6th.

00:34The Dow is projecting earnings of $0.41 per share on $884.02 million in revenue.

00:39Firm holding shares fell 3.64% to $73.15 on Wednesday, according to Benzinga Pro.

00:45For all things money, visit Benzinga.com.

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