Why Affirm Holdings Tanked 34.7% in February

Shares of Affirm Holdings (NASDAQ: AFRM) tanked 34.7% in February, according to data from S&P Global Market Intelligence. The buy now, pay later (BNPL) provider put up strong growth numbers in its second-quarter earnings report, but investors were concerned about mounting losses, heavy increases in marketing spending, and a big jump in credit losses.

On Feb. 10, Affirm reported its second-quarter earnings result that covered the three months ending in December. Revenue growth was strong in the period, up 77% to $361 million, handily beating expectations of $329 million going into the announcement. Just seeing that number, you might think Affirm stock jumped in the days following the report. But that is not the case.

Image source: Getty Images.

Source Fool.com