Affirm Holdings stock swoons 11% after Apple rolls out Pay Later service
Volha Barysevich


Affirm Holdings (NASDAQ:AFRM) stock sank 11% in Tuesday midafternoon trading, its biggest decline since Feb.9, after Apple (AAPL) started its Pay Later service that directly competes with Affirm's financing products that allow consumers to pay for purchases in installments.

Other companies that provide BNPL services didn't see a severe stock drop as BNPL are smaller parts of their businesses. PayPal Holdings (PYPL) fell 1.5%, and Block (SQ), which acquired Afterpay in early 2022, slipped 0.9%.
Another big competitor in the BNPL sector is Klarna (KLAR), a closely held company backed by SoftBank (OTCPK:SFTBY) (OTCPK:SFTBF).
In the past year, Affirm (AFRM) stock has dropped 76%.
Once mostly dependent on Peloton (PTON), Affirm (AFRM) has been adding new partners to diversify its base, most recently fitness equipment maker VersaClimber.
Two SA contributors have opposing views on Affirm. Tradevestor sees the stock's decline as overdone, while Colin Tedards explains why the stock isn't cheap enough.