AFRM sees rising demand for installment payments as inflation and gas costs pressure consumers, while disciplined underwriting helps manage credit risk.
Installment-lending stocks are running well ahead of the broad market at midday Wednesday as Treasury yields retreat and a fresh price-target raise on the group's largest name pulls peers along with it.
Shares of Affirm Holdings (NASDAQ:AFRM | AFRM Price Prediction) are unwinding a sharp post-earnings rally to open the week, handing back much of the gain built on Thursday's fiscal fourth-quarter report.
The head of buy now, pay later provider Affirm says gas prices are weighing on consumers. “The U.S. consumer undoubtedly sees the higher gas prices, so can't, can't ignore that,” Max Levchin said in an interview with CNBC's “Squawk Box” Friday (Aug. 28).
Offline retail through Affirm Card, new verticals across professional services/elective medical, and international expansion underscore AFRM's multi-pronged growth strategy. These have fed into the expanding merchant base, growing funding capacity, strong Affirm Card adoption, and higher transaction frequencies. AFRM's conservative FY2027 guidance may be revised upwards, as observed in the thrice raised FY2026 guidance and robust GMV growth.
AFRM???s record profitability, card momentum and merchant expansion frame fiscal 2027 as it balances growth with tight credit discipline.
AFRM's Australia comeback through Shopify's Shop Pay Installments opens a growth channel as GMV, revenues and its user base continue to rise.
Affirm Holdings AFRM shares rose about 11% in trading on Friday after the buy-now, pay-later company reported stronger-than-expected fourth-quarter results and delivered its most profitable quarter on record. The company reported adjusted earnings per share of $4.62, compared with analysts' expectations of $3.77.
Is a “breakout on tap” for shares of Affirm?
Affirm Holdings, Inc. posted strong quarterly results, beating expectations and driving shares up nearly 10% in off-hours trading. AFRM's resilient business model is evidenced by low delinquency rates and robust 36% gross merchandise volume growth, despite industry-wide credit concerns. Valuation remains elevated, with a forward P/E near 40 and Price/Sales around 6.3, even after a $1.5B tax benefit distorted GAAP EPS.
Affirm posts better-than-expected revenue and gross merchandise volume in its fiscal fourth quarter.
Australian shoppers can now select installment payments powered by Affirm when they click on Shopify's Shop Pay button, Affirm said in a Thursday (Aug. 27) press release. This capability is enabled by the global partnership of Affirm and Shopify, in which the companies launch Shop Pay Installments powered exclusively by Affirm.