Affirm Stock Drops As Walmart Rolls Out New Payment Options: The Details
Portfolio Pulse from Adam Eckert
Affirm Holdings Inc's stock dropped following news that Walmart Inc's majority-owned startup One is offering buy now, pay later services, directly competing with Affirm's exclusive installment loan services for Walmart customers. This development comes as buy now, pay later options drove $19.2 billion in online spending in Q1 2024, a 12% increase year-over-year. Affirm is expected to report a quarterly loss ahead of its earnings announcement on May 8.
April 23, 2024 | 1:12 pm
News sentiment analysis
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NEGATIVE IMPACT
Affirm's stock dropped following the announcement of Walmart's One offering competing buy now, pay later services.
Affirm's stock decline is directly tied to the news of Walmart's One offering similar services, which could dilute Affirm's market share and impact its financial performance, especially with an upcoming earnings report that is anticipated to show a loss.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Walmart's introduction of buy now, pay later services through One could potentially enhance its competitive position in the retail and financial services market.
Walmart's move to introduce buy now, pay later services through its startup One could attract more customers seeking flexible payment options, potentially increasing sales and enhancing Walmart's position in both retail and financial services.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70