Why Affirm Holdings (AFRM) Is Among Last Week’s Biggest Losers?

We recently published a list of These 10 Firms Were Last Week’s Biggest Losers. In this article, we are going to take a look at where Affirm Holdings, Inc. (NASDAQ:AFRM) stands against other firms that were last week’s biggest losers.

Ten companies fell significantly last week, mirroring a broader market downturn, as investors sold off positions following disappointing news and data that weighed heavily on market sentiment.

On Friday, the Dow Jones recorded its largest weekly drop, falling 1.07%, while the S&P’s main index and Nasdaq declined by 0.71% and 0.62%, respectively.

To come up with this week’s top decliners, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

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Affirm Holdings, Inc. (NASDAQ:AFRM)

Shares of Affirm Holdings Inc. (NASDAQ:AFRM) dropped by 11.47 percent over the past week as investors sold off positions while waiting on the sidelines for more concrete developments on the Federal Reserve’s stance on interest rates.

Affirm Holdings (NASDAQ:AFRM), a financial technology company primarily known for its “Buy Now, Pay Later” services, has businesses involved in providing consumers with an alternative way to pay for purchases over time, typically in installment plans, without the high interest rates and fees often associated with traditional credit cards.

According to analysts, investors repositioned their portfolios ahead of the next Fed meeting. Assuming the Fed does not lower its rates in the next meeting, this would more likely hurt Affirm’s performance due to higher borrowing costs and reduced consumer spending which could then potentially weigh in on its performance.

Overall, AFRM ranks 10th on our list of firms that were last week’s biggest losers. While we acknowledge the potential of AFRM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AFRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.