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Affirm & Upstart: Big Fintech Bites the Dust
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Affirm & Upstart: Big Fintech Bites the Dust

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.

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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