Affirm Stock Plunges 17.5% Amid CEO Selling, Inflation Woes
Affirm (NASDAQ: AFRM) stock has been on a downward trajectory, declining by 17.5% over the past five trading days. The company's shares have yet to recover to their pre-crisis high of $168.52, with the highest price since then being $92.18. Insider selling, notably by CEO Max Levchin, has contributed to this decline.
Affirm, a digital and mobile-first commerce platform, offers point-of-sale payment solutions, merchant services, and a consumer app. It serves approximately 29,000 merchants in the U.S. and Canada. However, the company's stock has not fared well during market shocks. During the 2022 inflation shock, Affirm stock plummeted 94.7%, compared to a 25.4% decline in the S&P 500.
Historically, Affirm has struggled to recover after significant declines. Since 2010, the median return within a year after sharp drops has been -24.2%. This poor recovery history may be a cause for concern for investors.
Currently, Affirm stock appears overvalued, with a P/E multiple of 476.3 and a P/EBIT multiple of 51.0. Despite being part of the Trefis High Quality Portfolio, which has a history of outperforming benchmark indices, Affirm's stock performance has been lacklustre. Investors may want to monitor the situation closely as the company navigates its current challenges.
Read also:
- chaos unveiled on Clowning Street: week 63's antics from 'Two-Tier Keir' and his chaotic Labour Circus
- Skechers Debuts First American Stores Focused on Athletic Footwear Performance
- Budget discrepancy jeopardizes highway projects' financial support
- Racing ahead in Renewable Energy Dominance: Changzhou, Jiangsu Pushes for Worldwide Renewable Energy Ascendancy
