Buy now, pay later (BNPL) company Affirm (NASDAQ:AFRM) is in the red today as the company continues its downward descent. Despite raising its fiscal third-quarter outlook amid stronger-than-expected revenue, AFRM stock is down nearly 10% today.
So, what’s going on with Affirm lately?
Well, this morning Affirm offered investors an update on its performance and updated its future outlook. The payment company raised expectations for its third-quarter and full-year 2022 financial results.
Affirm expects at least $335 million in revenue in its third fiscal quarter. This is an upgrade from its previous expectations of between $325 million and $335 million. For full fiscal year 2022, the company expects once again to be at the top of its previous expected range. Today, the company expects to end the year with at least $1.31 billion in revenue, up from its Feb. 10 estimate between $1.29 billion and $1.31 billion.
However, Affirm stock doesn’t seem to be reacting well to the news.
AFRM Stock Sees Sharp Pullback Following Mixed-Bag Announcement
Despite its improving outlook, investors seemed more interested by the recent bond-sale cancellation mentioned in the announcement. Affirm revealed delaying the sale of its asset-backed securities, scheduled for Friday. The company revealed one of its largest investors backed out of the deal last minute, citing general market volatility.
Investors were clearly displeased by the backout, sending the company hurtling downward. Indeed, AFRM is eyeing an all-time low today after shedding about 70% of tis stock price since December.
In November, Affirm saw its all-time high of $164 per share but has since been largely in the red. Today, AFRM is trading around $28 per share after its drop as of the time of writing. Considered a high-growth company, some may be shying away from the stock given current market uncertainty.
It’s unclear what path the BNPL company will take going forward, but rest assured investors will have their eyes on the price.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.