Affirm Holdings Stock Falls Alongside Retailers: What's Going On?

Affirm Holdings Inc AFRM shares are trading lower Thursday amid weakness in retail sentiment, which could impact buy now, pay later usage.

Affirm traded lower Wednesday after Target Corp TGT shares fell on weak earnings results. Target uses Affirm's buy now, pay later option.

• TGT Revenue: $26.04 billion missed estimate of $26.09 billion
• TGT EPS: 39 cents missed estimate of 73 cents

Target said inventory actions put significant pressure on its near-term profitability. The retailer announced a partnership with Affirm last year. Target customers have the option to split the total cost of purchases over $100 into simple monthly payments using the company's buy now, pay later technology.

Kohl's Corp KSS and TJX Companies Inc TJX also reported worse-than-expected earnings results this week. 

See Also: Why Kohl's Shares Are Down Today

The overall weakness in retail could be signaling a potential slowdown in consumer spending, which could lead consumers to rely less on Affirm for payments.

Affirm is set to report its fiscal fourth-quarter financial results on Aug. 25.

AFRM Price Action: Affirm has a 52-week high of $102.21 and a 52-week low of $13.64.

The stock was down 3.48% at $36.09 at press time, according to Benzinga Pro.

Photo: courtesy of Affirm.