From CNBC: 2025-04-28 08:00:00

PayPal, Block, and Affirm are closely linked to consumer health, causing investor concern ahead of earnings reports. The end of de minimis trade exemptions for Chinese imports threatens billions in low-cost cross-border e-commerce volume. PayPal, Block, and Affirm stocks have dropped significantly this year, though they rebounded last week on trade optimism.

President Trump signed tariffs on 180+ countries in April, causing market turmoil. A 90-day pause was announced, but high tariffs on Chinese imports remain. Fintech reports coincide with big tech earnings this week. Alphabet noted potential headwinds from the end of trade loopholes on its ads business during its earnings call.

E-commerce companies face uncertainty due to mixed messages from the administration. Higher tariffs can impact sales, especially for goods that were previously duty-free. PayPal is particularly exposed to tariff-related volatility, with a majority of revenue from consumer transactions and international markets. Analysts expect PayPal to post modest revenue growth and earnings per share.

Block, parent of Square, faces challenges with Cash App user growth and tightening underwriting for its buy now, pay later offering. Afterpay volumes are linked to discretionary consumer spending. Affirm reported an increase in monthly active users but may face tighter credit conditions and economic slowdown. Analysts project revenue growth for Block and Affirm.

Barclays analysts noted a potential pull forward of discretionary spending ahead of May tariffs, which could distort results. Retailers like Klarna and StubHub delayed IPOs due to market volatility. Analysts caution against overly optimistic growth expectations amid macroeconomic challenges. PayPal, Block, and Affirm declined to comment on the situation.



Read more at CNBC:: Fintech earnings focus concerns on tariffs, PayPal, Block, Affirm