Buy now, pay later (BNPL) providers‘ shares reversed their months-long climbs Friday, sliding ahead of a close to the year seen as vital to expanding their businesses.
Stock prices for Affirm Holdings (AFRM) and Afterpay parent company Block (SQ), fell after both fintech companies reported earnings Thursday that largely met or exceeded expectations. Shares of both companies, particularly Affirm’s, have generally risen since August.
Affirm reported $698 million in revenue — a 41% increase year-over-year — and $100 million in losses in the first-quarter of its fiscal year. Wall Street expected $663.9 million in revenue and net losses of $107.5 million, according to analysts polled by Visible Alpha.
Block reported $5.98 billion in revenue, less than the $6.18 billion consensus estimate provided by Visible Alpha. But Block beat Visible Alpha’s $240 million net income forecast, reporting $283.7 million in net income and $2.25 billion in profit across Afterpay; Cash App, a consumer financial service provider; and Square, a …