Affirm Stock Pulls Back

Benzinga

Affirm shares dipped after early gains as investors weighed Trump’s proposed 10% cap on credit card interest rates and its impact on alternative lending models.

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

00:02A firm holding Zinc's shares fell on Tuesday as investors reacted to President Trump's

00:06proposal to cap credit card interest rates at 10 percent by January 20, according to Benzinga.

00:12Trump warned issuers that current rates of 20 percent to 30 percent are abusive

00:17and said companies that failed to comply would face consequences.

00:20The proposal initially lifted shares of alternative credit companies,

00:24including Affirm, before those gains faded. The proposal could pressure traditional

00:28issuers to change their models while potentially favoring Affirms by now.

00:32Pay later approach with fixed payments over revolving credit.

00:35The stock moved lower as the Nasdaq 100 and S&P 500 also declined.

00:40Shares were trading at $76.07, down 0.42 percent at the time of publication.

00:47For all things money, visit Benzinga.com.

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