Affirm Holdings, Inc. (AFRM) saw its stock price plummet 5.05% during intraday trading on Friday, a significant decline that occurred despite the company reporting strong quarterly results.

According to a Barron's report, the fintech company delivered a beat-and-raise quarter, with gross merchandise volume surging 35% and revenue jumping 33%, exceeding analyst expectations. The company also raised its full-year guidance for the second time. However, the stock moved lower as investor focus shifted to growing concerns over credit quality within the buy-now, pay-later (BNPL) sector, which is central to Affirm's business model.

The report highlighted that a recent survey found 47% of BNPL users reported making a late payment within the past year, marking a steady increase from previous years. This rising delinquency rate appears to be overshadowing the positive operational metrics. Furthermore, the broader financial technology sector is under pressure, with peer companies experiencing significant declines and relevant sector ETFs down for the year, contributing to the negative sentiment around Affirm's stock.