Why Affirm Holdings Shares Are Falling

Affirm Holdings, Inc. AFRM shares are trading lower Wednesday following bearish analyst coverage from Wedbush.

Wedbush analyst David Chiaverini initiated coverage on Affirm with an Underperform rating and announced a $15 price target.

David Chiaverini noted four concerns:

1. Affirm’s path to GAAP profitability
2. Increasing competition in the buy now, pay later space
3. industry forecasts calling for slowing e-commerce sales (which drive Affirm’s gross merchandise volume, or GMV)
4. It's ability to cover its cost of capital as funding costs increase

Affirm Holdings operates a platform for digital and mobile-first commerce in the United States and Canada.

AFRM Price Action: Affirm shares have a 52-week high of $176.65 and a 52-week low of $13.64.

The stock was down 5.05% at $23.12 at press time, according to data from Benzinga Pro.