This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Affirm Stock Plunges 21% After a Slip of the Tweet
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Affirm Stock Plunges 21% After a Slip of the Tweet
Markets

Affirm Stock Plunges 21% After a Slip of the Tweet

Editorial Board Published February 10, 2022
Share
Affirm Stock Plunges 21% After a Slip of the Tweet
SHARE

A Twitter slip-up sent Affirm Holdings Inc.’s AFRM -21.42% shares on a wild ride that ended with the buy-now-pay-later company’s worst one-day drop on record.

Affirm closed down 21% at $58.68, a huge reversal from its performance earlier in the day, after the company accidentally tweeted some key quarterly results early. At one point, shares were up more than 12% at nearly $84.

The company later deleted the tweet, which disclosed a 77% quarterly revenue jump and a big increase in transaction volume. “Another great quarter is in the books,” it said. Affirm said the cause was “human error.”

Investors initially cheered the abbreviated results, which seemed to punctuate Affirm’s breakout year. The company went public in January 2021, its shares nearly doubling in their trading debut. Deals with Shopify Inc. and Amazon.com Inc. quickly established Affirm as the buy-now-pay-later provider of choice for big merchants.

Investors were less impressed after they saw the full report, sending the shares down as much as 33% in afternoon trading. The company reported a wider loss in the latest quarter, and analysts raised concerns about the company’s profit margins and financial guidance.

Still, revenue rose sharply to $361 million in the company’s second quarter from $204 million a year earlier. Analysts polled by FactSet were expecting revenue of $329 million.

Its gross merchandise volume for the quarter was $4.5 billion, up 115% from a year earlier. Meanwhile, active consumers more than doubled to 11.2 million, and the number of active merchants accepting Affirm rose to 168,000, 21 times more than a year earlier.

“We really hit it out of the park by any objective metric,” Chief Executive Max Levchin said in an interview.

Mr. Levchin said he was more focused on how Affirm performs over decades, not how its stock performs over the course of one day.

“I do think we had a pretty amazing quarter,” Mr. Levchin added. “We’ll see what the market will do when they hear the full story after the earnings call.”

Total operating expenses were $557.2 million, compared with $230.8 million a year earlier.

Affirm attributed the higher expenses to an increase in stock-based compensation following its IPO and expenses related to a recent acquisition. Its sales and marketing spending also increased, as did its provision for credit losses.

Net loss for the quarter was $159.7 million, compared with a loss of $26.6 million a year earlier. The loss per share was 57 cents, widening from 38 cents a year earlier. Analysts had expected a loss of 32 cents a share.

For the current quarter, the company projected revenue of $325 million to $335 million. Analysts are expecting revenue of $335 million.

Write to Peter Rudegeair at [email protected] and Robert Barba at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article California Sues Tesla, Alleging Racial Bias and Abuse California Sues Tesla, Alleging Racial Bias and Abuse
Next Article Zillow’s Shuttered Home-Flipping Business Lost 1 Million in 2021 Zillow’s Shuttered Home-Flipping Business Lost $881 Million in 2021

Editor's Pick

California dwelling of lacking child’s mother and father searched; father has served time for youngster cruelty

California dwelling of lacking child’s mother and father searched; father has served time for youngster cruelty

San Bernardino County sheriff’s investigators on Sunday, Aug. 17, searched the house of the mother and father of the infant…

By Editorial Board 9 Min Read
Farmer Needs a Spouse: John Sansone and Claire Dinette Break up!
Farmer Needs a Spouse: John Sansone and Claire Dinette Break up!

Studying Time: 2 minutes It's sadly over for one more actuality tv…

4 Min Read
Steak ‘n Shake slams Cracker Barrel CEO for eliminating ‘old-timer’ from emblem: ‘We take delight in our historical past’
Steak ‘n Shake slams Cracker Barrel CEO for eliminating ‘old-timer’ from emblem: ‘We take delight in our historical past’

FOX Enterprise’ Jeff Flock experiences on Cracker Barrel unveiling a brand new…

4 Min Read

Oponion

Don’t Combine Chia Seeds with These 9 Meals » Wholesome Way of life

Don’t Combine Chia Seeds with These 9 Meals » Wholesome Way of life

Chia seeds provide quite a few well being advantages. Nonetheless,…

October 20, 2024

Bessent says US will weigh China’s failure on ‘section one’ commerce deal from first time period in negotiations

Treasury Secretary Scott Bessent discusses the…

April 29, 2025

Cracks starting to point out as Warriors blow one other massive lead in loss to Nets

SAN FRANCISCO — After a improbable…

November 26, 2024

Edson Álvarez’s tiebreaking objective offers Mexico 2-1 win over US for tenth Gold Cup title

HOUSTON (AP) — Edson Álvarez scored…

July 7, 2025

Police trailed shoplifting suspect to her $5 million Blackhawk house

BLACKHAWK — She wore a “Love…

March 28, 2025

You Might Also Like

Trump’s 401(ok) enlargement fuels ethereum growth
Markets

Trump’s 401(ok) enlargement fuels ethereum growth

FOX Enterprise' Gerri Willis has the main points on the funding technique on 'Varney & Co.' Practically $4 billion of…

4 Min Read
Steak ‘n Shake slams Cracker Barrel CEO for eliminating ‘old-timer’ from emblem: ‘We take delight in our historical past’
Markets

Cracker Barrel inventory plunges amid model makeover backlash

FOX Enterprise’ Jeff Flock reviews on Cracker Barrel unveiling a brand new brand as a part of a broader model…

3 Min Read
Intel will get  billion from Softbank as White Home mulls stake
Markets

Intel will get $2 billion from Softbank as White Home mulls stake

Former Chrysler and Dwelling Depot CEO Bob Nardelli praises President Donald Trump’s daring financial play because the White Home eyes…

5 Min Read
Intel will get  billion from Softbank as White Home mulls stake
Markets

White Home mulls 10% stake in Intel after CEO assembly

Former Chrysler and Dwelling Depot CEO Bob Nardelli praises President Donald Trump’s daring financial play because the White Home eyes…

4 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?