STOCKS | Affirm CEO Says High Oil Prices Are Pressuring U.S. Consumers

Affirm shares were little changed on Friday after the buy-now-pay-later company reported fourth-quarter results. According to Sina Finance, CEO Max Levchin said high oil prices are putting pressure on consumers. Levchin said U.S. consumers are clearly feeling higher gasoline prices and that the company’s services can help them manage cost pressure from inflation. The American Automobile Association said the national average gasoline price was $4.09 per gallon on Friday, down from above $4.50 in May but still well above pre-war levels in Iran. The last time the national average was below $3 was March 2. Levchin said demand for the company’s business has risen in an inflationary environment because people are becoming more careful with spending. He also said consumers remain generally in decent shape, but caution is still needed. The latest personal consumption expenditures price index showed U.S. annual inflation at 3.7% in July. The index rose 0.2% month over month on a seasonally adjusted basis, while personal income increased 0.4% and personal spending rose 0.2%, both above market expectations. The company reported revenue of $1.17 billion for the fourth quarter, above the $1.11 billion market estimate from LSEG. Affirm forecast first-quarter revenue of $1.19 billion to $1.22 billion, above the $1.16 billion consensus estimate. Gross merchandise volume also beat expectations at $14.1 billion, compared with a StreetAccount estimate of $13.39 billion.