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Affirm Stock Down As Klarna's Buy Now, Pay Later Credit Loss Rises 17%

1. Affirm stock down 17% in 2025, lowering growth forecast worsens outlook. 2. Default rates for Buy Now, Pay Later loans are on the rise. 3. Q3 revenue met expectations, but Q4 guidance fell short. 4. Affirm's partnerships drove significant GMV growth and customer base expansion. 5. Economic contraction may lead to higher default risk in BNPL space.

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FAQ

Why Bearish?

The stock's significant drop and lowered forecasts indicate underlying weaknesses, similar to past downturns.

How important is it?

The article addresses significant operational challenges that could affect investor confidence.

Why Short Term?

Immediate effects from rising defaults and lowered guidance will likely occur in upcoming quarters.

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