What's Going On With Affirm (AFRM) Stock?
Portfolio Pulse from Henry Khederian
Shares of Affirm Holdings Inc (NASDAQ:AFRM) are trading lower by 4.3% due to concerns about future rate hikes following the FOMC statement and lower-than-expected initial jobless claims data. Higher interest rates could increase borrowing costs for consumers, affecting their ability to access credit and take out loans, including those offered by Affirm. This could potentially lead to a decrease in consumer spending on big-ticket items often financed through Affirm's services.
September 22, 2023 | 4:43 pm
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Affirm's stock is trading lower due to concerns about future rate hikes. Higher interest rates could increase borrowing costs for consumers, affecting their ability to take out loans, including those offered by Affirm, and potentially leading to a decrease in consumer spending.
The news directly mentions Affirm and discusses how the potential future rate hikes could negatively impact the company's business model. As Affirm's services are heavily reliant on consumer borrowing, higher interest rates could make it more expensive for consumers to borrow, potentially leading to a decrease in the use of Affirm's services and thus negatively impacting the company's revenues.
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