Affirm stock drops 8% more as fiscal Q2 earnings, year outlook fail to impress
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Affirm Holdings (NASDAQ:AFRM) stock slides 9.5% in premarket trading, following Thursday's 21% drop, after the Buy Now Pay Later financing company's outlook disappointed investors.
Jefferies analyst John Hecht downgrades Affirm (AFRM) to Underperform from Hold.
Truist analyst Andrew Jeffrey cuts his price target for the stock to $100 from $150, acknowledging likely ongoing weakness. 
Mizuho USA analyst Dan Dolev said investors are likely disappointed by a combination of low take rates for Amazon (NASDAQ:AMZN), higher charge-offs as a percentage of loans held, and "insufficient clarity" for Affirm's (AFRM) core volume outlook.
Truist's Jeffrey wrote: "We cannot explain why 2Q22 was so strong, relative to disappointing 2H22 GMV and revenue guidance."
The analyst was modeling $2.4B for Shopify (NYSE:SHOP) SplitPay in Affirm's (AFRM) FY2022 gross merchandise volume (GMV), while management indicated Shopify SplitPay will be 15-20% of FY2022 GMV, or $2.6B. His model expected ~35% core GMV growth in the current fiscal year, before Amazon (AMZN). Now, Jeffrey expects that Affirm's (AFRM), non-Shopify GMV will grow 35%, including three quarters of the Amazon interest-bearing product.
"We think this represents a surprising deceleration in the non-Shopify business, even considering Peloton (NASDAQ:PTON) weakness," Jeffrey said. "Although we cannot precisely quantify non-Shopify GMV growth, this outlook seems weak."
Note that Peloton (PTON) has historically accounted for a large portion of Affirm's (AFRM) business, but lately it has diversified through partnerships with Shopify (SHOP) and Amazon (AMZN).
Truist's Jeffrey keeps a Buy rating on the stock for its long-term prospects.
From Thursday, Affirm Holdings (AFRM) stock tanks after Q2 loss, guidance sees more losses ahead
See what Affirm (AFRM) CEO Max Levchin and CFO Michael Linford had to say on the earnings call.