Affirm stock has declined by 45 percent from its first day of trading and 61 percent from its all-time high. The major reason for the stock sell-off is the broader decline in growth and particularly fintech stocks. The ongoing rotation in the markets from growth to value has caused many growth names to take a dive.
After Affirm’s listing, the company started trading at very high valuations. It popped 98 percent on the first day of trading. This over-enthusiasm gave way to a more discerning outlook following the change of the growth narrative for global economies.
Another company-specific reason for the fall in Affirm stock is the release of its quarterly results on May 11. The results were mixed but the company’s still high valuation gave a reason to sell the stock. Many analysts, including Credit Suisse, RBC Capital, and Truist, reduced the stock’s target price following its results.
View more information: https://marketrealist.com/p/affirm-afrm-stock-2025-forecast/