Why Shares of Affirm Are Falling Today
Shares of the buy now, pay later fintech company Affirm Holdings (NASDAQ: AFRM) dropped more than 12% as of 11:32 a.m. EST for no obvious reason, although the company will report earnings results after market close today.
I think there are two main reasons investors are getting spooked today. First, the U.S. Department of Labor reported today that the consumer price index (CPI), a strong indicator of inflation, increased 6.2% from October 2020, blowing by expectations. The CPI saw price increases on a wide range of consumer goods.
Tech stocks tend to not fare as well in an inflationary environment because it increases the cost of doing business, dampens earnings expectations, and investors can get higher yields on safer assets.
Source Fool.com
