Why Shares of Affirm Are Falling Today
Shares of the buy now, pay later (BNPL) company Affirm Holdings (NASDAQ: AFRM) were nearly 15% lower in the final hour of trading, as tech and growth stocks continued to come under pressure and as regulators began to look deeper into the BNPL space. The shares closed Thursday down more than 10.5%
Tech and growth stocks have had a tough month, as investors worry about higher inflation and likely interest rate hikes next year, which are never good for growth stocks. The market appeared to be recovering after the Federal Open Market Committee (FOMC) wrapped up its final meeting of the year yesterday. Following the meeting, the FOMC announced that it will speed up the tapering of its bond purchases, and most members of the committee expect to see three rate hikes next year.
But the market once again sold off tech and growth today, as the Bank of England raised interest rates, and investors continued to worry about inflation.
Source Fool.com
