Why Affirm Stock Tanked on Tuesday
Shares of Affirm (NASDAQ: AFRM) tanked as much as 18% on Tuesday morning after the company reported fiscal third-quarter earnings. The results were mixed compared to Wall Street's expectations, as Affirm recognized significant stock-based compensation expenses in connection with its IPO earlier this year. As of 12:10 p.m. EDT, shares had somewhat recovered and were down 7%.
Revenue in the fiscal third quarter was $230.7 million, easily topping the $198.2 million in sales that analysts were looking for. That resulted in a net loss per share of $1.06, which was worse than the $0.31 per share in red ink that Wall Street was modeling for. The buy-now-pay-later (BNPL) specialist reported gross merchandise volume (GMV) of $2.3 billion. Active merchants more than doubled to 12,000, and active consumers jumped 60% to 5.4 million.
Image source: Affirm.
Source Fool.com
