Several fintech stocks continued to fall today as the Federal Reserve's preferred gauge of inflation confirmed that consumer prices and inflation stayed hot in May. Shares of the buy now, pay later company Affirm (NASDAQ: AFRM) are trading nearly 6.5% lower as of 10:34 a.m. ET today. Shares of the artificial intelligence lender Upstart (NASDAQ: UPST) are trading roughly 3.4% lower, and shares of the Brazilian digital bank Nu Holdings (NYSE: NU) are down nearly 4.7%.
Shares of the buy now, pay later (BNPL) company Affirm Holdings (NASDAQ: AFRM) traded nearly 9% lower as of 1:28 p.m. ET today after a Wall Street analyst cut his price target on the stock this morning. Piper Sandler analyst Kevin Barker maintained a neutral rating on Affirm but lowered his price target from $32 per share to $28. Like many fintech companies on the consumer side, Affirm has seen its stock sell off immensely as investors worry about a host of concerns including loan defaults.
Investors are focusing on inflation and rising interest rates, which have rippled across the economy. One concern is that inflation weighs on consumers, who could cut spending on goods and services -- reducing opportunities for BNPL companies. Another concern is that consumers use BNPL loans more to pay for things without knowing how much debt they are taking on.