Affirm Holdings, Inc. (AFRM) saw its stock price surge 5.13% in the 24-hour trading session, as investors reacted positively to news of President Trump's proposal to cap credit-card interest rates at 10%.
The proposal, which could make traditional credit cards less attractive, is seen as a potential boon for buy-now-pay-later (BNPL) operators like Affirm. Analysts suggest that BNPL services could gain market share if credit-card companies are forced to tighten lending standards under the proposed cap.
Raymond James policy analysts highlighted Affirm as a potential beneficiary of the policy shift, noting that alternative financial-services companies could see increased demand if the cap is implemented.
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