As macroeconomic conditions continue to worsen, the Fed continues to raise rates and consumers tighten their purse strings, even more, big fintech names are feeling the afterburn.
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Payments solutions and commerce platform provider Affirm Holdings (NASDAQ:AFRM) has seen its stock price plummet ~92% over the past year. The company’s recent first-quarter numbers were a mixed bag with impact continuing from one of its biggest partners, Peloton (NASDAQ:PTON).
Further, Affirm has now lowered its outlook for 2023 as challenges continue to loom.
Today, Stephens analyst Charles Nabhan has reiterated a Sell rating on the stock while lowering the price target to $15 from $18.
Lending platform operator Upstart Holdings (NASDAQ:UPST) too, has seen its stock price wither by nearly 95% over the past year.
The company is seeing demand for loans evaporate as four successive rate hikes by the Fed take their toll. Its third-quarter sales dropped by 31% year-over-year while operating expenses continue to rise.
The company has already announced a headcount trim as demand woes deepen. Today, Goldman Sachs’ Mike Ng has reiterated a Sell rating on the stock while decreasing the price target to $11 from $14.
The next trajectory of these names would hinge on the direction of the rate cycle but can the ‘bagholders’ wait that long?
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