Affirm(AFRM) CNBC·2025-04-03 20:06Core Viewpoint - The announcement of widespread tariffs by President Trump has significantly impacted fintech companies and credit card issuers, leading to a substantial decline in their stock values due to their close ties to consumer spending and credit [1][4]. Group 1: Market Impact - Affirm's stock fell by 19%, Robinhood decreased by 10%, and PayPal dropped by 8% following the tariff announcement [2]. - American Express and Capital One each saw a decline of 10%, while Discover fell by more than 8% [2]. - The overall market experienced a loss of nearly $2 trillion in value from the S&P 500, with the Nasdaq dropping 6%, marking its worst day since the onset of the Covid pandemic in 2020 [4]. Group 2: Company Exposure and Risk - Companies like PayPal and Affirm are considered to have more cyclical risk and higher exposure to tariffs, while larger firms in the fintech space are viewed as more defensive [5]. - Visa, Mastercard, and Fiserv demonstrated better resilience during the market downturn, with Fiserv being described as a "safe haven" due to its lower exposure to tariff volatility [5]. Group 3: Consumer Behavior and Credit Performance - Affirm's executives have indicated that rising prices due to tariffs could lead to increased demand for their buy now, pay later services, suggesting a potential shift in consumer behavior [6]. - However, concerns about delinquencies have been raised, with comparisons made to private label store cards, indicating that delinquency rates tend to double during recessions compared to traditional credit cards [7].