‘You Get Screwed by Those People’: Ramsey Torches Affirm the Morning After Its Record $14.4 Billion Quarter
Affirm reported a record $14.4B in gross merchandise volume for Q1, with active cardholders rising 112%. Despite this, shares fell 9% after missing earnings estimates and rising delinquencies. Dave Ramsey criticized Affirm and BNPL services on his show, advising callers to avoid them.
How this was made
The 30-second read
Why it matters
Earnings miss and rising delinquency rates may trigger a sell‑off, but strong GMV growth could support a rebound.
Market read
Affirm's earnings miss is the primary driver of its recent price decline and may affect sentiment toward the BNPL industry.
What to watch
Potential upside from scaling the network to $100B and higher‑interest product mix.
Background
Affirm is a publicly traded BNPL provider that recently expanded its product suite and reported a record quarter.
Ticker impact
Affirm reported Q1 GMV of $14.4B up 34% and GAAP EPS of $0.47 missing consensus, causing the stock to fall about 9% for the week.
likely continued downside as investors digest the EPS miss and higher delinquency rate
The miss versus consensus and credit quality concerns are fresh data that typically trigger sell pressure.
Market effects
Highlights credit risk concerns for the broader BNPL sector.
U.S. consumer finance stocks may see pressure.
Limited to markets with exposure to BNPL lenders.
Counterpoint
Long‑term growth of GMV and interest‑income could offset short‑term EPS miss.
Key entities
- companyAffirm Holdings Inc.
U.S.-listed BNPL lender reporting Q1 results.
