Is the Affirm share price dragging ASX BNPL shares lower?

ASX-listed buy now, pay later (BNPL) shares have opened lower across the board on Thursday. Whilst the S&P/ASX All Technology Index (ASX: XTX) is slumping 1.16% lower at the time of writing, some ASX BNPL shares are faring considerably worse.

Could the overnight performance of the Affirm Holdings Inc (NASDAQ: AFRM) share price be partially to blame?

Why does the Affirm share price matter? 

Global equity markets have the tendency to move in tandem and be affected by each other’s performances. For example, a significant sell-off in the US market overnight will typically see ASX futures lose ground or open weaker than expected.

Shares that are listed in different markets but operate in the same sector or with similar business models can also have a tendency to exhibit similar movements. 

Affirm is one of the top three largest BNPL players in the United States with a market capitalisation of US$18 billion. Despite its size, the company only has regional exposure to North America compared to most ASX BNPL shares that have more diversified geographic exposure. 

Affirm is a relatively new listing, making its debut on the Nasdaq on 13 January at an initial public offering (IPO) price of US$39 per share. Its shares exploded on open and in the following days, ran as high as US$146.90. 

The Affirm share price has more than halved since its peak, closing almost 8% lower on Wednesday night (our time) to a record low of US$72.63. 

ASX BNPL shares sink on Thursday 

The stars have aligned for ASX-listed BNPL shares to fall on Thursday.

The tech-heavy Nasdaq Composite (NASDAQ: .IXIC) slumped 2% overnight compared to the Dow Jones Industrial Average Index (DJX: .DJI) that finished flat and S&P 500 Index (SP: .INX) finishing just 0.55% lower. 

The weakness in tech, arguably combined with the Affirm share price diving 8%, has seen the following performances from ASX-listed BNPL shares so far this morning: 

• Afterpay Ltd (ASX: APT) share price down 3.05% to $104.22.
• Zip Co Ltd (ASX: Z1P) share price down 3.52% to $7.67.
• Sezzle Inc (ASX: SZL) share price down 0.87% to $7.445.
• Splitit Ltd (ASX: SPT) share price currently flat at 84 cents after having dropped as low as 82.5 cents in earlier trade. 
• Openpay Group Ltd (ASX: OPY) share price down 3.6% to $2.41. 
• Humm Group Ltd (ASX: HUM) share price up 2.08% to 98 cents following a positive update. 
• Laybuy Holdings Ltd (ASX: LBY) share price down 3.33% to $1.015.

ASX-listed BNPL shares are all slumping to 2 to 4-month lows with the exception of Laybuy, which is faring even worse.

In a similar fashion to the Affirm share price, Laybuy has hit an all-time record low following its ASX debut on 7 September 2020. From peak to trough, Laybuy shares have lost more than 50% in value from $2.30 to their current level. 

More reading

• 5 things to watch on the ASX 200 on Thursday
• Macquarie sees near-term pain for the Afterpay (ASX:APT) share price
• Why Zip (ASX:Z1P) and this growth share are in the buy zone today
• Airtasker (ASX:ART) share price cools after explosive IPO
• Why the Xero (ASX:XRO) share price is outperforming today

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Humm Group Limited and Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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