Affirm slides today: Key reasons behind the decline

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Affirm slides 3.87% today on weak momentum

Highlights

Affirm reported Q2 FY2026 revenue of $1.12 billion, up nearly 30% year-over-year, and net income of $129.6 million, surpassing analyst forecasts.
The company benefited from expansion in merchant, card, and loan sale revenue, driven by major gains in Affirm Card use and more active merchants, but noted increased credit losses.
AFRM trades at $57.12, well below its MA-20 ($69.66) and MA-50 ($71.41), with key support at $57.84 and heavy bearish momentum prevailing.

Earnings surge offsets credit loss rise amid product expansion

Affirm reported its fiscal second quarter 2026 results for the period ended December 31, 2025, with revenue of $1.12 billion, marking nearly 30% year-over-year growth and beating analyst forecasts. The company also achieved net income of $129.6 million, supported by strong expansion in merchant, card, and loan sale revenue, along with major gains in Affirm Card usage and active merchants. Secondary highlights include early-stage product integration with QuickBooks, initial rollout of a Boost AI feature, and the submission of a bank charter application. Increased credit losses were noted following the results release.

Anton Kharitonov, expert at Traders Union, views Affirm’s price action as decisively bearish. He points to technicals well below major averages and notes that every rebound attempt is met by sellers. Kharitonov sees the net income beat and product rollout as positive, but believes increased credit losses and volatile sentiment overshadow the growth. He also cautions that a failure to hold $57.84 could accelerate losses. "Despite recent headlines, persistent downside momentum signals further caution for AFRM investors," Kharitonov states.

Viktoras Karapetjanc, expert at Traders Union, highlights robust year-over-year revenue growth and the company’s advancing merchant and card ecosystem. He believes product integration and the bank charter application position Affirm for further expansion and regulatory tailwinds. Karapetjanc sees recent volatility as an opportunity within an improving fundamental framework. "Affirm’s structural growth and active innovation signal upside potential once short-term volatility settles," says Karapetjanc.

Jainam Mehta, market strategist, notes the strong bearish technical setup but recognizes that aggressive selling after positive earnings reflects a potential sentiment shift. He sees tactical scenarios for contrarian trades if the price finds support near $57.84. "A volatility squeeze or break below support could offer tactical entry points for nimble traders," Mehta advises.

Technical breakdown intensifies with sustained bearish momentum

Downward momentum in AFRM is confirmed technically, as the price is well below major moving averages, with the Ichimoku Kijun line at $71.41 acting as a key resistance. Daily momentum indicators reinforce a bearish setup: MACD and ADX show persistent selling, RSI sits at 30.43, Stoch RSI at 8, CCI at –123, BBP is negative, and the Awesome Oscillator is firmly below zero. Price action after a gap up at the open was met with aggressive selling and high volatility, with the session’s low near $55.88 reflecting the dominance of sellers.

Previously it was reported that Affirm Holdings, Inc. is trading well below its short-, medium-, and long-term moving averages, with technical indicators such as RSI, MACD, and CCI signaling persistent negative momentum and oversold conditions. The stock faces strong intraday selling pressure, with resistance near $72 and support around $60, suggesting a bearish to sideways outlook unless the price can sustain a move above resistance.

Source of Data: AFRM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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