Affirm Holdings Inc (NASDAQ:AFRM) stock has been ripping higher, returning investors about 30% over the past year. Analysts have price targets suggesting at least 30-40% upside, and retail optimism is building — but Kerrisdale Capital says the entire rally is built on a familiar and dangerous illusion.Track AFRM stock here.In a sharply worded short report, Kerrisdale branded Affirm a "Buy Now, Cry Later" story, arguing the BNPL leader is following the same subprime credit playbook that has burned lenders fo ...

Core Insights - Affirm is piloting a program to help renters split their monthly rent into two equal payments every two weeks at 0% APR, in partnership with Esusu [1][3] - The program aims to provide a flexible option for managing housing expenses, aligning payments with biweekly paychecks [3] - Affirm underwrites each application individually, ensuring that only those who can responsibly afford repayments are approved [5] Group 1: Program Details - The pilot program allows renters to make payments without hidden fees, late fees, or compounding interest [1] - Esusu assists renters in building credit by reporting on-time rent payments to major credit bureaus [2] - The official rollout date of the pilot program has not been confirmed as it is still in early stages [8] Group 2: Industry Perspectives - Analysts suggest that this program could be beneficial for those on tight budgets, but caution that it is too early for a definitive assessment [8] - Concerns have been raised about the potential risks associated with "buy now, pay later" (BNPL) services, particularly if consumers manage multiple loans simultaneously [11] - The payment method is linked to a debit card or checking account, emphasizing the importance of having sufficient funds to cover payments [12]

Core Viewpoint - The shift towards buy-now, pay-later (BNPL) options among younger consumers presents a significant opportunity for companies like Affirm, which is well-positioned to benefit from this trend [1][4]. Industry Overview - BNPL has gained immense popularity, transforming short-term credit into a convenient checkout option on e-commerce platforms and digital wallets [2]. - Approximately 90 million Americans utilized BNPL services last year, with an average monthly spend per user reaching $244 [3]. Company Positioning - Affirm, a leading BNPL operator, allows consumers to spread payments over time through short-term installment loans, primarily earning fees from merchants rather than charging interest [5][6]. - The average order value for Affirm's short-term products is $100, with funding available for purchases ranging from $35 to $1,000 [6]. Financial Performance - Affirm's gross merchandise volume (GMV) surged from $20.2 billion to $36.7 billion, marking a 38% increase last year [10]. - The company has reduced its operating loss from $1.2 billion in 2023 to $87 million last year, achieving its first profitable quarter on a GAAP basis with an operating income of $63.7 million [15]. Strategic Partnerships - Affirm has established partnerships with major e-commerce platforms like Amazon and Shopify, leading to a 70% increase in total partner volume over the last year [11]. Future Projections - The company projects a GMV of $47.5 billion for its 2026 fiscal year, with anticipated operating margins of 7.5% [16].

Core Viewpoint - Affirm Holdings, Inc. (NASDAQ:AFRM) is positioned to benefit from recent market changes, particularly in the Buy Now, Pay Later (BNPL) sector, as banks tighten lending criteria and consumers seek alternative financing options [2]. Group 1: Company Overview - Affirm Holdings, Inc. is a financial technology company primarily known for its Buy Now, Pay Later services [2]. - The stock has experienced a decline of 2.9% year-to-date [2]. Group 2: Market Context - Significant volatility in payments and financial technology stocks occurred in January following President Trump's suggestion of a 10% APR cap for credit cards [2]. - Mizuho noted that BNPL companies like Affirm could benefit from the tightening of bank lending criteria [2]. Group 3: Analyst Insights - Wolfe Research initiated coverage of Affirm in December, assigning a Peer Perform rating with a price target range of $72 to $82, emphasizing the company's growth in the 0% APR loan market [2]. - Jim Cramer has frequently discussed Affirm, praising its performance and indicating that it would benefit from the recent market changes, noting a four-point increase in stock price following Trump's remarks [2].

Key Takeaways AFRM upgraded underwriting by adding real-time bank balances and cash flow signals to credit decisions.The approach is live for card users and opt-in banking links, helping thin credit profiles.AFRM says the richer view can lift purchasing power and credit quality.Affirm Holdings, Inc. (AFRM) recently upgraded how it evaluates credit risk by embedding richer real-time financial signals into its underwriting process, like up-to-the-minute bank account balances and cash flow trends. Instead of r ...

Affirm Holdings Inc (NASDAQ:AFRM) shares are down on Tuesday as investors react to President Donald Trump’s proposal regarding credit card interest rates. Here’s what investors need to know.Affirm Holdings stock is taking a breather. What’s ahead for AFRM stock?Credit Card Rate Cap: A Game Changer?Trump warned credit card issuers that they must lower interest rates to 10% by Jan. 20 or face severe consequences, labeling current rates of 20% to 30% as abusive. This aggressive stance has initially pushed shar ...

Affirm Holdings, Inc. ( AFRM ) has almost become a synonymous term for BNPL across the United States. Although there are still plenty of skeptics about these business models, I believe Affirm has established enough credibility toAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for ...

Group 1: Market Performance - Walmart shares increased by 3%, contributing to gains in the S&P 500 and Nasdaq, where it recently moved its stock listing from the NYSE [1] - Consumer staples rose by 1.4%, leading sector gainers, while the technology sector also saw an increase [1] - The S&P 500 and Dow reached record closing highs, driven by gains in technology companies and Walmart [9] Group 2: Walmart's Index Inclusion - Walmart is set to join the Nasdaq-100 index on January 20, which could attract billions of dollars from passive index funds [1] - The shift to the Nasdaq is expected to enhance Walmart's visibility and investment appeal [1] Group 3: Financial Sector Performance - Financial stocks declined by 0.8%, leading sector decliners in the S&P 500, with Citigroup down 3% and American Express down 4.3% [10] - Trump proposed a one-year cap on credit card interest rates at 10%, impacting lender and credit card firm shares [10] Group 4: Earnings Outlook - Analysts anticipate a 26.5% year-over-year earnings growth for the technology sector in the upcoming fourth-quarter earnings season [10] - Overall S&P 500 companies' earnings are expected to rise by 8.8% compared to the previous year [10] Group 5: Market Activity - U.S. exchange volume reached 17.29 billion shares, above the 20-day average of 16.40 billion [8] - Advancing issues outnumbered decliners by a ratio of 1.68-to-1 on the NYSE, with 725 new highs and 48 new lows [8]

Mizuho Securities says fintech companies like SoFi, Affirm, and Block could benefit from Trump's proposed cap on interest rates. ...

Affirm Holdings, Inc. (NASDAQ:AFRM) is one of the stocks Jim Cramer offered insights on. When a caller mentioned that they wish to buy more AFRM shares, Cramer remarked: “Oh, you should buy more…. I think that stock is going to par, which is genuine Wall Street gibberish for $100. It’s at $80 right now. Max Levchin, genius. He’s a funny guy, too. Come on, man.” Stock market data showing an upward trajectory. Photo by Burak The Weekender on Pexels Affirm Holdings, Inc. (NASDAQ:AFRM) provides a digital ...