Shares of Affirm Holdings Inc. AFRM were dropping 8% in Tuesday trading after Apple Inc. AAPL said it had finally “introduced” its buy-now-pay-later service, called Apple Pay Later. “Starting today, Apple will begin inviting select users to access a prerelease version of Apple Pay Later, with plans to offer it to all eligible users in the coming months,” Apple said in a Tuesday morning release. Mizuho analyst Dan Dolev suggested that Affirm’s Tuesday selloff seemed unwarranted. “We remind investors that the first news about this product occurred nearly 2-years ago, and should already be reflected in AFRM’s stock price,” he wrote in a note to clients. “Overall, although the knee-jerk reaction is understandable, Apple’s move may only further solidify the BNPL category as legitimate.” Affirm shares have declined 78% over the past 12 months as the S&P 500 has lost 13%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.