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Benzinga
Benzinga
Business
Randy Elias

Why Affirm Holdings Shares Are Falling

Affirm Holdings, Inc. (NASDAQ:AFRM) shares are trading lower Wednesday following bearish analyst coverage from Wedbush.

Wedbush analyst David Chiaverini initiated coverage on Affirm with an Underperform rating and announced a $15 price target.

David Chiaverini noted four concerns:

  1. Affirm’s path to GAAP profitability
  2. Increasing competition in the buy now, pay later space
  3. industry forecasts calling for slowing e-commerce sales (which drive Affirm’s gross merchandise volume, or GMV)
  4. It's ability to cover its cost of capital as funding costs increase

 

Affirm Holdings operates a platform for digital and mobile-first commerce in the United States and Canada.

AFRM Price Action: Affirm shares have a 52-week high of $176.65 and a 52-week low of $13.64.

The stock was down 5.05% at $23.12 at press time, according to data from Benzinga Pro.

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