Affirm Stock Is Falling. Here's Why.
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Affirm Holdings Inc. announced a private offering of $750 million in convertible senior notes and plans to repurchase up to $300 million of its common stock. This news has led to a decline in Affirm's stock price.
December 17, 2024 | 12:45 pm
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Affirm Holdings Inc. is issuing $750 million in convertible senior notes and plans to repurchase $300 million of its common stock. This has resulted in a decline in its stock price.
The issuance of convertible notes can lead to potential dilution of existing shares, which often results in a negative reaction from the market. Additionally, the stock repurchase plan may not be enough to offset the dilution concerns, leading to a decline in stock price.
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