@alc2022 Tell us why you think the market is wrong. You just keep blabbering on about stuff we already know. Reading off what was said in earnings report.
@Marc__MD7 @ChainSm99011166 @Scentofawoman10@InternetH0F Yep. They all just happen to be recording this real moment. As if they knew it was going in. Fake af but little kids are gullible.
If the recession truly hits, we believe $AFRM will go bankrupt. They're literally financing their company USING the asset value of consumer loans they hold, which they've discounted just 5% for losses.
This company, which loses a lot of money quarterly, will be upside down with just a 20% correction in loan asset values.
I suspect BNPL loans will be the FIRST thing to get burned in a recession and see 40-70% losses in these loans in an actual recession. Affirm staff have bluntly told me that the risk of not repaying your Affirm loan is not being able to get another Affirm loan. They're not going to repossess your flight, Peloton, or grocery purchase. Maybe your credit gets hit too, but maybe not. That's up to Affirm to report you and reporting BNPL has been questionable at best.
When consumers realize the recourse is nearly 0 to stop paying, the FIRST payment they'll stop making (and probably should stop making), are buy-now, pay-later loans. Maybe @Apple was SMART for getting out of BNPL.
Read this from AP: "NEW YORK (AP) β Apple is discontinuing its buy now, pay later service known as Apple Pay Later barely a year after its initial launch in the U.S., and will rely on companies who already dominate the industry like Affirm and Klarna."
LOL!!! Apple will instead saddle Klarna and Affirm with the debt!! BRILLIANT FOR APPLE! But it's a sign!
The more a recession is priced in, the more tempting shorting Affirm looks.
Note: I have no position on Affirm at this point. I wish I had a fat short, but I have nothing. I wish it were Monday...