Affirm and Block, two key players in the buy now, pay later (BNPL) sector, experienced a notable drop in their stock prices on Friday, reversing a positive trend that began in August. Despite reporting earnings that met or exceeded expectations, Affirm's shares fell approximately 11%, while Block saw a decrease of about 4%. Affirm reported a significant year-over-year revenue increase of 41%, totaling $698 million, but also incurred losses of $100 million in its fiscal first quarter. Block, on the other hand, reported $5.98 billion in revenue, which fell short of analysts' expectations, although it exceeded net income forecasts. Both companies are focusing on expanding their customer bases during the crucial holiday shopping season, with Affirm aiming to attract users through interest-free options and Block planning to make Afterpay accessible to 24 million Cash App debit card users. The upcoming holiday period is seen as critical for both firms to enhance their market presence and drive sales.
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