Affirm (NASDAQ:AFRM) stock is a hot topic among traders on Thursday following news that the U.S. Consumer Financial Protection Bureau (CFPB) plans to target “buy now, pay later” companies.
The CFPB doesn’t currently monitor companies like Affirm, but it now plans to; the watchdog group sees them as a risk to consumers. This comes after buy now, pay later companies saw major growth during the pandemic.
To put that growth in perspective, these types of companies created 180 million loans worth $24.2 billion in 2021. That’s an increase of more than 200% from 2019. With that type of interest, it’s no wonder why AFRM and others are catching attention right now.
CFPB Director Rohit Chopra said the following about the change:
“In the U.S., we have generally had a separation between banking and commerce, but as big tech-style business practices are adopted in the payments and financial services arena, that separation can go out the door.”
How Is This Affecting AFRM Stock?
Traders don’t seem too frenzied by today’s news. AFRM stock’s trading volume is currently sitting at more than 8 million shares as of this writing. That’s still a ways off from the daily average trading volume of 14.1 million shares.
AFRM stock started off down in early Thursday morning trading, but it has largely recovered as of this writing. It’s also worth noting that shares down 75% since the start of the year.
There’s more recent stock market news worth jumping into below!
We’ve got all of the latest stock market coverage traders need to know about today! For Thursday, that includes why Amtrak, Humana (NYSE:HUM) and Cryptyde (NASDAQ:TYDE) are making headlines. You can catch up on all of this news from the following links!
More Thursday Stock Market News
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On the date of publication, William White 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.