Latest news with #AFRM
Yahoo
3 days ago
- Business
- Yahoo
Affirm expands partnership with Williams-Sonoma into Canada
Affirm (AFRM) announced the expansion of its partnership with Williams-Sonoma (WSM) into Canada, building on their existing U.S. collaboration. This brings Affirm's pay-over-time options to Canadians shopping at Williams-Sonoma's brands, including Williams Sonoma, West Elm, Pottery Barn, Pottery Barn Teen, Pottery Barn Kids, and Mark & Graham. Approved Canadian shoppers can now split purchases into monthly payments with no late or hidden fees. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on AFRM: Disclaimer & DisclosureReport an Issue Mixed options sentiment in Affirm Holdings with shares up 4.41% Affirm (AFRM) Navigates BNPL Paradox as Growing Pains Weigh on Sentiment Klarna's IPO Is on Thin Ice as Q1 Losses Double to $99 Million Mixed options sentiment in Affirm Holdings (AFRM), with shares down $-4.81 (-8.51%) near $51.74 Affirm Stock (AFRM) Surges after Revealing New Deal with Costco
Business Insider
6 days ago
- Business
- Business Insider
Affirm (AFRM) Navigates BNPL Paradox as Growing Pains Weigh on Sentiment
Affirm Holdings (AFRM) has experienced a volatile journey since its 2021 IPO. After soaring to bubble-level valuations, the Buy Now, Pay Later (BNPL) leader saw its stock fall to $9 per share in 2023. Since then, shares have been on a steady upward trajectory, driven by notable financial improvements. However, the current valuation suggests that investor expectations are now running high, setting the stage for its fiscal Q3 2025 earnings earlier this month, which delivered beats on both revenue and earnings per share. Confident Investing Starts Here: However, Affirm's guidance for its fiscal fourth quarter fell short of investor expectations, contributing to recent stock volatility. In my view, Affirm—and the broader BNPL sector—is caught in a strategic paradox: demand for BNPL services tends to rise during inflationary periods, yet these same economic conditions heighten investor focus on sustainable growth and profitability. This tension leads me to maintain a cautiously neutral stance on Affirm's stock. Why Consumers Are Flocking to BNPL in Today's Economy The Buy Now, Pay Later (BNPL) market is positioned for significant expansion in the years ahead, with Affirm competing among a handful of major players, including Klarna, PayPal, and Afterpay (now part of Block). In its fiscal third quarter, Affirm reported a 36% year-over-year increase in Gross Merchandise Volume (GMV), reaching $8.6 billion, driven primarily by rising transaction volumes and a growing base of active users. Current macroeconomic conditions—marked by persistent inflation and more cautious consumer spending—are accelerating BNPL adoption. The ability to break large purchases into smaller, manageable payments appeals to budget-conscious consumers seeking flexibility. Moreover, BNPL is becoming a familiar option for many shoppers, and emerging data suggests that some consumers are increasingly favoring these services over traditional credit cards, which often come with hidden fees and compounding interest. Guidance Miss Spooks AFRM Investors Affirm's fiscal fourth quarter revenue guidance—ranging from $815 million to $845 million—came in below consensus expectations, which were around $840 million at the midpoint. The market reacted swiftly, with the stock falling nearly 10% following the announcement. This response highlights just how sensitive Affirm's valuation remains to any signs of slowing growth. Beyond the disappointing guidance, broader market concerns are at play. While macroeconomic headwinds such as inflation may support increased BNPL adoption, they also amplify investor focus on financial durability. Key concerns include the risk of rising consumer defaults and Affirm's still-unproven path to consistent GAAP profitability. Despite recent operational progress, the company has yet to deliver the margin stability needed to fully reassure the market. Moreover, Affirm's stock performance appears increasingly influenced by market sentiment around its ability to navigate future economic uncertainty—particularly when forward-looking guidance falls short of expectations. While the company continues to pursue GAAP profitability, signs of slowing growth and a strategic emphasis on 0% APR financing may have raised investor concerns. Although these no-interest products appeal to higher-credit consumers with stronger income profiles, they are inherently less profitable than interest-bearing loans, potentially impacting near-term margins Fintechs, Banks, and Tech Giants Fight For Market Share As with any rising consumer trend, growing popularity inevitably attracts competition. The BNPL space is now populated by both dedicated fintech players, like Affirm, and established financial institutions eager to capitalize on the demand. In my view, the barriers to entry for large financial institutions are relatively low. Tech giants such as Apple and Google are integrating BNPL features directly into their ecosystems, potentially diminishing the relevance of standalone providers like Affirm. At the same time, major banks like JPMorgan Chase and Citibank are embedding BNPL-like options within existing credit card offerings, further intensifying competitive pressure. Is AFRM a Buy, Sell, or Hold? AFRM's average price target of $67.18 implies a potential upside of 36% in the next twelve months. Earlier this month, Wells Fargo analyst Andrew Bauch supported the bullish case for AFRM, issuing a Buy rating with a price target of $67. Bauch highlighted Affirm's strong GMV growth and was also encouraged by the 18% quarter-over-quarter growth in active cardholders. For context, the Affirm Card is a Visa card that permits full or split purchases, effectively becoming a more regular spending tool for consumers rather than just being used for individual online checkouts. Meanwhile, Morgan Stanley analyst James Faucette has a Hold rating on AFRM. He is cautiously optimistic on the stock, noting 'despite the macroeconomic volatility that poses risks to credit performance, Affirm's delinquency data remains strong, and insights from other consumer finance companies are generally positive.' Early BNPL Lead Meets Unproven Profit Path In summary, the BNPL market remains in its early stages, bringing both opportunity and risk. Affirm's early entry has helped build brand recognition, a growing user base, and strategic partnerships. With the overall market still expanding, there is significant upside if Affirm can capitalize on its foundation. For example, the company's card integration with platforms like Apple Pay enhances accessibility and broadens consumer reach. However, the path forward is far from certain. The BNPL sector faces meaningful regulatory and economic unknowns, having yet to be tested by a full economic downturn. The market is increasingly fragmented, and Affirm may need to prioritize brand differentiation, potentially at the expense of near-term profitability. Perhaps most importantly, its ability to consistently deliver GAAP profitability remains uncertain. In business, generating revenue is not enough—sustainable cash generation is what ensures survival. Overall, I remain neutral on Affirm (AFRM). At its current valuation, the stock appears to reflect both the growth potential and the underlying challenges of the BNPL paradox.
Yahoo
21-05-2025
- Business
- Yahoo
Affirm Partners With Cali Pass to Expand in a High-Spending Segment
A growing player in the buy now pay later (BNPL) space, Affirm Holdings, Inc. AFRM, recently teamed up with Cali Pass. This partnership aims to introduce flexible and customer-friendly payment options to the winter sports market, a high-spending, experience-driven consumer segment. Starting with the 2025-2026 ski season, Cali Pass customers can choose between interest-free biweekly payments or extended monthly terms while purchasing their passes or lift tickets. Cali Pass clients can avail this plan online at checkout by choosing Affirm or in-store by scanning a QR code with their phones. They need to go through a real-time eligibility check, and approved customers can select their preferred payment plan, with transparent terms and no hidden charges. If this plan turns out to be a hit, we might see Affirm expand into similar seasonal markets. By incorporating Affirm's clear payment model, Cali Pass is not only making skiing adventures affordable but also expanding its market by appealing to more budget-minded skiers and first-time participants. It joins Affirm's growing network of retail partners of 358,000. The latest move is likely to strengthen AFRM's position in the leisure and travel market and help diversify its revenue sources. In recent trends, it is seen that Gen Z and Millennials are leaning toward flexible payment options, and AFRM is stepping up when they're needed the most. It not only caters to this rising trend but also helps ski resorts balance out revenues during off-seasons by encouraging early-pass purchases. According to Grand View Research, the U.S. winter sporting goods market is projected to generate $145 billion in revenues by 2028. In the past year, AFRM shares have rallied 54.1%, outperforming the industry's growth of 30.7%. Image Source: Zacks Investment Research AFRM currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the computer and technology space are Oddity Tech Ltd. ODD, StoneCo Ltd STNE and Paylocity Holding Corp PCTY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Oddity Tech's current-year earnings of $1.64 per share has witnessed two upward revisions in the past 30 days against none in the opposite direction. Oddity beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 24.38%. The consensus estimate for current-year revenues is pegged at $796.4 million, implying 23.1% year-over-year growth. The Zacks Consensus Estimate for StoneCo's current-year earnings of $1.43 per share has witnessed one upward revision in the past seven days against none in the opposite direction. StoneCo beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 6.4%. The consensus estimate for the current year's revenues is pegged at $2.8 billion, indicating 12.2% year-over-year growth. The Zacks Consensus Estimate for Paylocity Holding's current-year earnings of $4.79 per share has witnessed six upward revisions in the past 30 days against none in the opposite direction. Paylocity Holding beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 13.9%. The consensus estimate for current-year revenues is pegged at $1.6 billion, calling for 12.7% year-over-year growth. 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 Paylocity Holding Corporation (PCTY) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report ODDITY Tech Ltd. (ODD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
16-05-2025
- Business
- Yahoo
Why Affirm Holdings (AFRM) Stock Crashed Yesterday
We recently compiled a list of the Traders Flee These 10 Stocks Today. In this article, we are going to take a look at where Affirm Holdings, Inc. (NASDAQ:AFRM) stands against other stocks that crashed yesterday. Wall Street's main indices ended mixed on Thursday as investors continued to digest a series of first-quarter earnings and key economic data. Among the three indices, only the Nasdaq registered losses, down 0.18 percent. In contrast, the Dow Jones grew by 0.65 percent while the S&P 500 rose by 0.41 percent. Meanwhile, 10 companies registered hefty losses during the session, battered by a flurry of negative news, missed estimates, and a weak outlook for the rest of the year. In this article, let us explore the 10 companies that lag in performance and identify the reasons behind their decline. To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume. An entrepreneur launching her new brand on the company's platform, looking confident and joyful. Affirm Holdings snapped a three-day winning streak on Thursday, losing 8.49 percent to close at $51.75 apiece, as investor sentiment was dampened by a weak outlook for the rest of the year. According to Affirm Holdings, Inc. (NASDAQ:AFRM) CEO Max Levchin, its business from 0 percent APR installments generates lower revenues than its other products. 'We continued to lean into 0 percent APR monthly installments, which grew 44 percent year over year, and constituted 13 percent of total GMV, the highest level in the past two years," Levchin said. "While the revenue and RLTC (revenue less transaction costs) content in such transactions is marginally lower compared to interest-bearing loans, they attract higher credit quality consumers to Affirm, drive outsized point of sale conversion for merchants, and build our brand equity,' he added. Looking ahead, Affirm Holdings, Inc. (NASDAQ:AFRM) expects full-year revenues to increase to between $3.163 billion and $3.193 billion, up from its earlier outlook of $3.13 billion to $3.19 billion previously. Overall, AFRM ranks 6th on our list of stocks that traders flee today. While we acknowledge the potential of AFRM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AFRM but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
AFRM Partners With Costco and Mattress Firm for Smarter Payments
A leading player in the buy now, pay later (BNPL) space, Affirm Holdings, Inc. AFRM recently expanded its footprint through two major partnerships with Costco Wholesale Corporation and Mattress Firm. These strategic partnerships are designed to help consumers finance big purchases with confidence, especially during summer and Memorial Day sales. customers can use Affirm to fund online transactions for $500 or more. They need to go through a real-time eligibility check, and approved customers can choose from monthly payment options with transparent terms and no hidden charges. This is especially helpful for higher-priced merchandise like appliances, furniture and seasonal items. At the same time, Affirm's fresh partnership with Mattress Firm provides flexible bi-weekly and monthly payment plans across more than 2,200 stores nationwide, as its biggest annual event begins, the Memorial Day Sale. Customers may now buy in-store or online and get tailored financing featuring potentially 0% APR. This action represents a significant step up in Affirm's growth path as it accesses the high-volume retail and specialty consumer market. By offering customized payment experiences, Affirm is setting itself up as a go-to alternative to traditional credit. Affirm's transaction volume is expected to ramp up with these deals. These are not only going to increase its customer base but also build trust through reputable brands. These partnerships show today's trend and require flexible, transparent payment and affordable prices. Costco and Mattress Firm join AFRM's merchant network of more than 358,000 partners. In the past year, AFRM shares have rallied 75.1%, outperforming the industry's growth of 32%. Image Source: Zacks Investment Research AFRM currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the computer and technology space are Oddity Tech Ltd. ODD, StoneCo Ltd STNE and Paylocity Holding Corp PCTY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Oddity Tech's current-year earnings of $2.02 per share has witnessed three upward revisions in the past 30 days against none in the opposite direction. Oddity beat earnings estimates in each of the trailing four quarters, with the average surprise being 32.8%. The consensus estimate for current-year revenues is pegged at $796.4 million, implying 23.1% year-over-year growth. The Zacks Consensus Estimate for StoneCo's current-year earnings of $1.41 per share has witnessed one upward revision in the past seven days against none in the opposite direction. StoneCo beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 6.4%. The consensus estimate for the current year's revenues is pegged at $2.7 billion, indicating 9.8% year-over-year growth. The Zacks Consensus Estimate for Paylocity Holding's current-year earnings of $6.95 per share has witnessed seven upward revisions in the past 30 days against none in the opposite direction. Paylocity Holding beat earnings estimates in each of the trailing four quarters, with the average surprise being 15.4%. The consensus estimate for current-year revenues is pegged at $1.6 billion, calling for 12.7% year-over-year growth. 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 Paylocity Holding Corporation (PCTY) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report ODDITY Tech Ltd. (ODD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
