Affirm Holdings, Inc. (AFRM) stock plummeted 5.39% on Friday, underperforming the broader market amid concerns about slowing consumer spending and bearish investor sentiment toward the buy-now, pay-later (BNPL) company.

The sell-off in AFRM shares came as the BNPL industry faces headwinds from muted consumer spending growth, fueled by economic uncertainties and persistent high interest rates. Affirm, a leading player in the BNPL space, could be impacted by these broader trends, as cautious consumers potentially curb their spending habits.

Additionally, heavy bearish options trading activity in AFRM stock on Friday suggested negative investor sentiment, with over 16,900 put options traded, or 1.7 times the expected volume. The most active contracts were the February 25th $71 puts and the February 28th weekly $69 puts, indicating traders were positioning for further downside in the stock.