Affirm Volumes Soar but Stock Dives as Delinquencies Inch Higher

The buy now, pay later (BNPL) engine may still be firing on most cylinders, but judging by the 15% drubbing Affirm’s stock took after hours Tuesday (Nov. 8), investors are more focused on risks right now than growth. In the case of Affirm specifically, that worry was aimed at the slowdown in Peloton’s sales, a volatile macro backdrop, and an upward trend on delinquencies.

“In light of the current volatile macro-economic environment and the continued and pronounced slowdown with a particular large merchant partner, we are reducing our outlook for FY’23,” executives wrote in their shareholder letter.

That partner is Peloton, of course, now at 2% of GMV, where it had been more than 20% previously. While Peloton works to address its own slowdown and list of problems, its headwinds are spilling over into Affirm’s results.