What's Behind Affirm's Meltdown?
Plus, crypto regulation in the UK and Europe.
Number of the Week: -80% (explanation below)
What’s Behind Affirm’s Meltdown?
Here is a shocking fact to behold: within the last five months, the market value of Affirm—the widely touted US market leader in the burning-hot Buy Now, Pay Later (BNPL) sector—has plummeted by about $35 billion. At one point this week Affirm’s market capitalization dipped below $10 billion for the first time since going public in January 2021.
This is especially surprising for at least two reasons: a) the company was founded, and is run, by Max Levchin, who’s usually considered to have magical Wall Street powers; b) Affirm continues to post phenomenal growth numbers (more on this below).
So what is going on?
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