We recently compiled a list of the 10 Stocks Bear the Brunt of Trade Threats. In this article, we are going to take a look at where Affirm Holdings, Inc. (NASDAQ:AFRM) stands against the other stocks.
Wall Street’s main indices fell further on Tuesday as investors sold off positions to mitigate risks from the ongoing trade tensions among some of the world’s largest economies.
The Dow Jones fell the most during the trading session, losing 1.55 percent, while the S&P 500 declined 1.22 percent. The Nasdaq dropped by 0.35 percent.
Following the US imposition of a 25-percent tax on goods from Canada and Mexico on Tuesday, countries announced a promise to retaliate. Canada, as well as China, which received a 10 percent additional tax, immediately announced retaliation. Mexico is expected to follow suit.
The negative sentiment spilled over to 10 stocks, predominantly retailers, with the tariff threats seen to pose pressures on their profit margins. In this article, we have detailed the reasons behind their declines.
To come up with Tuesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
An entrepreneur launching her new brand on the company’s platform, looking confident and joyful.
Affirm Holdings, Inc. (NASDAQ:AFRM)
Affirm Holdings, Inc. (NASDAQ:AFRM) lost 7.84 percent of its value on Tuesday to close at $57.01 apiece following news that its director, Keith Rabois, disposed of a significant portion of his ownership in the company.
In a regulatory filing, Rabois said he sold a total of 16,088 shares of AFRM’s common stock at prices ranging between $61.73 and $66.40 apiece for a total amount of $1.03 million.
Following the sell-off, Rabois’s ownership in the company now stands at 61,520.
According to a report from Zacks Research, Affirm Holdings, Inc. (NASDAQ:AFRM) recently broke out above its 50-day moving average, suggesting a short-term bullish trend.
Zacks also gave Affirm Holdings, Inc. (NASDAQ:AFRM) a “strong buy” rating on expectations that it could be poised for a potential surge.
Overall AFRM ranks 4th on our list of Tuesday’s worst performers. While we acknowledge the potential of AFRM as an investment, our conviction lies in the belief that some 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 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.