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positive Stocks have plummeted nearly 30% in the last two days, and are on track to finish their second week on record, following the tariff announcements cleaned by President Donald Trump on Wednesday.
Wide range of tariffs could represent a particular issue of affirmation as buy-now providers rely on consumer spending and economists expect prices for all sorts of goods to rise. The news got worse on Friday, with assertive rival Klarna delaying the long-standing IPO due to market volatility.
Klarna was set to make her debut on the New York Stock Exchange under ticker Klar, targeting a valuation of around $15 billion. Affirm’s market capitalization is currently at $11 billion. Klarna reported revenue of $2.81 billion last year.
In addition to Klarna, Ticket Marketplace’s Stubhub will suspend stock sales, raising concerns that the expected rebound of the IPO market will not be made anytime soon. According to the Wall Street Journal, Chime has reportedly been publicly delaying financial filings to regulators and postponing the IPO further.
The Nasdaq has fallen more than 9% this week, heading towards the sharpest decline since the early days of the 2020 Covid pandemic.
The set-off shows the sharp turn of the BNPL sector that Wall Street was excited about towards the tail end of 2024. Jack Dorsey’s blockowning BNPL provider Afterpay, it jumped 22% that month, but fell 9% this week.
“When you go down the spectrum, that’s when you’re exposed to more periodic risks and tariffs,” said Sanjay Sahurani, senior analyst at KBW. “That’s where you see more weaknesses.”
SIG analyst James Friedman noted that Affirm is exposed to fashion, beauty and travel exposure. Approximately 42% of AFFIRM’s trades are common products, with fashion and travel combining an additional quarter of volume.
AFFIRM spokesman declined to comment on the delay in Klarna’s listing.
Regarding market volatility, the spokesman said the adoption of products such as AFFIRM, which offer more flexible options than credit cards, is “a secular and persistent trend throughout the market cycle.”
“We will undertake all transactions before making real-time credit decisions, allowing consumers to pay over time without slow or hidden fees,” Affirm said.
Watch: Affirm CEO: We are not debit cards, we are a credit card alternative
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