Max Levchin says the market is wrong about Affirm Holdings Inc., the buy now, pay later company he co-founded a decade ago. It might just take a recession to prove it.
Affirm stock is down 77% since hitting its peak in November, compared with a 9% decline in the S&P 500 during the same period. Investors are worried about future costs of borrowing, growing competition and whether Affirm’s borrowers will fall behind on payments during a downturn. The company’s total valuation stands at about $11 billion, down from a peak of $47 billion.