Affirm Holdings, Inc. (AFRM) saw its shares plummet 5.72% during pre-market trading on Friday. The significant drop followed the company's recent earnings release and subsequent analyst reactions.
The buy now, pay later provider reported strong fiscal second-quarter results, with earnings and revenue beating analyst expectations. However, investor sentiment turned negative due to the company's forward-looking guidance for the third quarter, which aligned with or slightly trailed consensus estimates, raising concerns about near-term growth prospects.
Adding to the pressure, multiple Wall Street firms, including JPMorgan, Stephens, BofA Global Research, RBC, TD Cowen, and UBS, lowered their price targets on Affirm stock following the earnings report. These analyst actions reflect heightened caution about the company's future performance amidst a challenging macroeconomic environment for consumer finance.