Top Analyst Backs Affirm (AFRM) Stock Despite Klarna's Big Walmart Move
Top-rated analyst Andrew Jeffrey from William Blair has backed Affirm Holdings' (AFRM) stock with a Buy rating despite the company's loss of its partnership with retail giant Walmart (WMT) to Sweden-based rival Klarna. Consequently, AFRM stock fell by over 4% on Monday. However, Jeffrey believes the market reaction to the deal was overstated.
Light Up your Portfolio with Spark:
Easily identify stocks' risks and opportunities.
Discover stocks' market position with detailed competitor analyses.
In context, Klarna teamed up with Walmart-backed OnePay to offer installment loans to U.S. shoppers. This deal replaces Affirm as Walmart's quick credit optio n, boosting Klarna's U.S. market reach.
William Blair Keeps Bullish Stance on AFRM Stock
Five-star-rated analyst Jeffrey maintains a Buy rating on Affirm Holdings, arguing that concerns over Klarna's Walmart deal may be exaggerated. He points out that Walmart isn't a major revenue driver for Affirm, so the impact is likely minimal.
Following the Klarna-Walmart deal, Affirm clarified that its collaboration with Walmart contributed around 5% of its gross merchandise volume and 2% of its adjusted operating income over the six months ending in December. The company also emphasized that its services remain accessible through direct-to-consumer options, including the Affirm Card.
Additionally, Jeffrey believes Walmart's switch to Klarna was likely driven by pricing rather than a reflection of Affirm's performance. Despite losing Walmart as a partner, Affirm's ability to boost customer loyalty and sales for merchants remains strong. All in all, Jeffrey sees Affirm as an appealing investment, highlighting its strong risk/reward balance and attractive valuation compared to future EBITDA projections.
Is Affirm a Good Stock to Buy Now?
Overall, AFRM stock has received a Moderate Buy consensus rating on TipRanks, based on 11 Buys and six Holds. The average price target for Affirm is $74.08, suggesting an upside of 54.5% from its current price.
Year-to-date, AFRM stock has declined over 20%.
See more AFRM analyst ratings
Disclosure
Questions or Comments about the article? Write to editor@tipranks.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Toronto Sun
4 hours ago
- Toronto Sun
‘Orgasmic meditation' wellness company leaders convicted in forced labour trial
Published Jun 09, 2025 • 3 minute read Nicole Daedone, centre, founder and former CEO of OneTaste, departs Brooklyn federal court on Tuesday, June 13, 2023, in New York City. Photo by Jeenah Moon / AP Photo NEW YORK — The leaders of a sex-focused women's wellness company that promoted 'orgasmic meditation' have been convicted of federal forced labour charges. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account A Brooklyn, N.Y., jury on Monday found Nicole Daedone, founder of OneTaste Inc., and Rachel Cherwitz, the California-based company's former sales director, guilty after deliberating for less than two days following a five-week trial. The two each face up to 20 years in prison when sentenced later. Prosecutors had argued the two women ran a years-long scheme that groomed adherents — many of them victims of sexual trauma — to do their bidding. They said Daedone, 57, of New York, and Cherwitz, 44, of California, used economic, sexual and psychological abuse, intimidation and indoctrination to force OneTaste members into sexual acts they found uncomfortable or repulsive, such as having sex with prospective investors or clients. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. The two told followers the questionable acts were necessary to obtain 'freedom' and 'enlightenment' and demonstrate their commitment to the organization's principles. Prosecutors said OneTaste leaders also didn't pay promised earnings to the members-turned-workers and even forced some of them to take out new credit cards to continue taking the company's courses. Read More Assistant U.S. Attorney Nina Gupta, in her closing statement last week, said the defendants 'built a business on the backs' of victims who 'gave everything' to them, including 'their money, their time, their bodies, their dignity, and ultimately their sanity. This advertisement has not loaded yet, but your article continues below. 'The jury's verdict has unmasked Daedone and Cherwitz for who they truly are: Grifters who preyed on vulnerable victims by making empty promises of sexual empowerment and wellness only to manipulate them into performing labour and services for the defendants' benefit,' said Joseph Nocella, U.S. Attorney for the Eastern District of New York. Daedone's defence team cast her as a 'ceiling-shattering feminist entrepreneur' who created a unique business around women's sexuality and empowerment. Cherwitz's lawyer, Celia Cohen, argued that the witnesses who testified weren't forced to do anything. When they didn't like the organization anymore or wanted to try other things, she said, they simply left. 'No matter what you think about OneTaste and what they were doing, they chose it. They knew what it was about,' she said in her closing statement last week. 'The fact they are regretting the actions that they took when they were younger is not evidence of a crime.' This advertisement has not loaded yet, but your article continues below. Lawyers for the defendants said their clients maintain their innocence and intend to appeal. 'We are deeply disappointed in today's verdict,' the lawyers said in a statement Monday. 'This case raised numerous novel and complex legal issues that will require review by the Second Circuit.' Daedone co-founded OneTaste in San Francisco in 2004 as a sort of self-help commune that viewed female orgasms as key to sexual and psychological wellness and interpersonal connection. A centrepiece was 'orgasmic meditation,' or 'OM,' which was carried out by men manually stimulating women in a group setting. The company enjoyed glowing media coverage in the 2010s and quickly opened outposts from Los Angeles to London. Portrayed as a cutting-edge enterprise that prioritized women's sexual pleasure, it generated revenue by providing courses, coaching, OM events, and other sexual practices for a fee. Daedone sold her stake in the company in 2017 for $12 million — a year before OneTaste's marketing and labour practices came under scrutiny. The company's current owners, who have rebranded it the Institute of OM Foundation, have said its work has been misconstrued and the charges against its former executives were unjustified. They maintain sexual consent has always been a cornerstone of the organization. The company didn't immediately respond to an email seeking comment. Toronto Blue Jays Olympics Columnists Canada Ontario
Globe and Mail
6 hours ago
- Globe and Mail
Top Stock Reports for Amazon.com, Walmart & Cisco Systems
Monday, June 9, 2025 The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Inc. (AMZN), Walmart Inc. (WMT) and Cisco Systems, Inc. (CSCO). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today's research reports here >>> Ahead of Wall Street The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning. You can read today's AWS here >>>Pre-Markets Flat Ahead of CPI, PPI & Possible Trade Deals Today's Featured Research Reports Shares of have gained +14.3% over the past year against the Zacks Internet - Commerce industry's gain of +19.8%. The company's first-quarter results were driven by Prime and AWS momentum. Strengthening the AWS services portfolio and its growing adoption rate contributed well to AWS performance. Ultrafast delivery services and an expanding content portfolio were beneficial. Strengthening relationships with third-party sellers amounted to another positive. Robust advertising contributed well. Amazon's expanding global presence, growing capabilities in grocery, pharmacy, healthcare and autonomous driving are key positives. Deepening focus on GenAI is a major plus. The Zacks analyst expects 2025 net sales to increase 6.9% from 2024. However, Amazon announced mixed guidance for the second quarter. High tariffs imposed by President Trump on goods imported from China have cast uncertainty on retailers such as Amazon. AMZN's free cash flow has decreased significantly. (You can read the full research report on here >>>) Walmart's shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+46.7% vs. +46.1%). The company benefits from the inherent strength of its highly diversified business model. Walmart's strong omnichannel strategy has boosted traffic at physical stores and digital platforms. The company's focus on improving delivery services is successful, leading to steady grocery market share gains. Upsides like these, along with growth in newer ventures like advertising and membership, fueled first-quarter fiscal 2026 results where earnings and revenues increased year over year and e-commerce sales surged. Despite a strong start to the year, Walmart expects potential hurdles in the coming quarters. The company withheld its fiscal second-quarter earnings outlook, citing uncertainty related to tariffs and a highly fluid economic environment. These tariff costs, even at reduced levels, are expected to push prices higher in the near term. (You can read the full research report on Walmart here >>>) Shares of Cisco Systems have outperformed the Zacks Computer - Networking industry over the past year (+48% vs. +47.4%). The company's business model has evolved with subscription revenues accounting for more than half of its total revenues. Increase in recurring revenue base bodes well for investors. The Splunk acquisition enhances its recurring revenue base. The buyout significantly expands Cisco's portfolio of software-based solutions, contributing more than $4 billion in ARR and makes it one of the largest software companies in the world. The launch of AI-powered Hypershield, which combines security and networking, strengthened Cisco's security portfolio. However, it has been suffering from sluggish networking sales, primarily due to lackluster demand from telecommunication and cable services providers, as well as stiff competition. Cisco's prospects are further challenged in the AI-driven networking space due to stiffening competition. (You can read the full research report on Cisco Systems here >>>) Other noteworthy reports we are featuring today include Ecolab Inc. (ECL), American International Group, Inc. (AIG) and DTE Energy Company (DTE). Mark Vickery Senior Editor Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN) Walmart (WMT) Benefits from Impressive E-Commerce Operations Cisco (CSCO) Benefits From Strong Security Products Adoption Featured Reports Innovation Drives Ecolab (ECL) Amid Ongoing Macro Challenges Per the Zacks Analyst, Ecolab's pricing actions and innovation pipeline is likely to drive growth. Yet, cost fluctuations and macro uncertainties may weigh on margins. AIG Benefits From Divestitures Amid High Combined Ratio Per the Zacks Analyst, business streamlining by selling low returning units and focusing on high growth units boosts operational capacities. However, a deteriorating combined ratio remains a concern. Infrastructural Investments Aid DTE Energy (DTE) Amid Poor Solvency Per the Zacks analyst, DTE Energy makes systematic investments to maintain and upgrade the reliability of its infrastructure. Yet its poor financial ratios indicate weak solvency position. NetApp (NTAP) Gains from Strong Demand for Product Portfolio Per the Zacks analyst, NetApp's performance gains from traction in all-flash portfolio and first-party and marketplace cloud storage services. IT spending and volatile macro backdrop are headwinds. Residential Kitchen Unit Aids Middleby (MIDD) Amid High Debt Per the Zacks analyst, solid traction of Middleby's Residential Kitchen Equipment unit, fueled by strong demand for outdoor products, will continue to lend momentum to it. High debt remains a woe. Loan Growth, Rates Aid OneMain Holdings (OMF), Costs High Per the Zacks analyst, loan growth, lower interest rates, diverse offerings, and a decent balance sheet will likely aid OneMain Holdings' financials. Yet, high costs and weak asset quality are woes. Operational Efficiency Aids Avis Budget (CAR), Costs High Per the Zacks analyst, rising operational efficiency has improved profitability and enabled Avis Budget to maintain margins despite inflation. However, escalating expenses are worrisome. New Upgrades Branch Openings, Loans, High Rates Aid Cullen/Frost (CFR) Per the Zacks analyst, Cullen/Frost's branch expansion efforts in the Texas region will drive deposit and loan growth. This, along with high interest rates, will aid the company's top line. Robust Buyouts & Infrastructure Spending Benefits Dycom (DY) Per the Zacks analyst, Dycom's prospects are gaining from accretive buyouts, maintenance and operations services, and fiber infrastructure projects, indicating an upbeat near-term view. Blackbaud (BLKB) Gains on Strong Portfolio & Share Buyback Per the Zacks analyst, Blackbaud is gaining from a robust product portfolio, a steady share repurchases strategy, and margin expansion, which is contributing to growth momentum. New Downgrades Weak Crack Spreads and Margins Ail Eni's (E) Growth Outlook Per the Zacks analyst, E struggles with weak crack spreads, declining biofuel margins, and sluggish demand in its refining and chemical segments, all of which threaten its profitability. Escalated SG&A Costs Hurt Columbia Sportswear's (COLM) Profits Per the Zacks analyst, Columbia Sportswear is seeing higher SG&A costs. In the first quarter of 2025, the company's SG&A expenses were up 1.5% to $354.5 million. Paramount's (PARA) Prospects Suffer from Lower TV Revenues Per the Zacks analyst, Paramount is suffering from TV Media revenue declines, rising costs and stiff competition in the streaming space from Netflix, Amazon and Apple TV+. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report This article originally published on Zacks Investment Research ( Zacks Investment Research
Toronto Star
6 hours ago
- Toronto Star
Leaders of ‘orgasmic meditation' women's wellness company OneTaste convicted in forced labor trial
NEW YORK (AP) — The leaders of a sex-focused women's wellness company that promoted 'orgasmic meditation' have been convicted of federal forced labor charges. A Brooklyn jury on Monday found Nicole Daedone, founder of OneTaste Inc., and Rachel Cherwitz, the California-based company's former sales director, guilty of forced labor conspiracy after deliberating for less than two days following a roughly monthlong trial.
