Trump's Interest Rate Cap And An Activist Short-Seller Report Is Weighing Hard On This BNPL Stock: Momentum Score Nosedives

Leading buy now, pay later service, Affirm Holdings Inc. (NASDAQ:AFRM) is off to a rough start in 2026, down 15% year-to-date, as sector-wide pressures, alongside company-specific setbacks weight on the stock.

The pressure on the stock is now being reflected in its Momentum score in Benzinga’s Edge Stock Rankings, which has witnessed a steep pullback in recent weeks.

Affirm’s Momentum Score Nosedives

The Momentum score in Benzinga’s Edge Rankings indicates the strength of a stock and is calculated based on price movements and volatility across multiple time frames, before being ranked as a percentile against others.

Affirm’s Momentum score has dropped from 72.68 to 21.46 in just over a week, tracking the stock’s pullback over the past couple of days, which began with President Donald Trump’s cap on credit card interest rates earlier this month.

Even though Trump’s proposal primarily targeted credit cards, the move did send ripples across the BNPL segment, given the criticism the segment has faced in recent months from prominent political activists and leaders for its predatory lending practices.

Affirm’s shares were hit once again after activist short-seller Kerrisdale Capital published a short report against the company, calling it a “Buy Now, Cry Later” story, citing its deteriorating credit fundamentals and over-reliance on financially fragile consumers.

The report also underscored key structural differences between the company and its peers, such as Klarna Group PLC (NYSE:KLAR), noting that Affirm relies more heavily on interest income, while Klarna's model is largely driven by merchant fees, leaving it more exposed to Trump's policy proposals.

Affirm’s shares were down 3.92% on Thursday, closing at $62.80, and are down another 1.82% overnight. The stock scores high on Growth, but does poorly on Value and Momentum in Benzinga’s Edge Stock Rankings, with an unfavorable price trend in the short, medium, and long terms.

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