Affirm Holdings, Inc. (NASDAQ:AFRM) is one of Jim Cramer’s stock calls while he discussed the confusion surrounding the Trump-Iran conflict. A caller asked whether they should add to their position, hold, or sell to cut their losses. Cramer replied: You know, don’t cut your losses. I mean, I just touched base with them on their delinquencies. They’re very low. I think this thing’s going to be a rocket ship. I think a lot of people are betting against it. It’s a mistake. Down 40%, doesn’t make sense to me. ...

Affirm Holdings, Inc. (NASDAQ:AFRM) ranks among the best rebound stocks to buy right now. On March 11, Affirm Holdings, Inc. (NASDAQ:AFRM) outlined its plan at the Wolfe FinTech Forum, emphasizing robust growth and developing partnerships in the face of a competitive fintech landscape. Financially, Affirm Holdings Inc. (NASDAQ:AFRM) recorded 39% GMV growth over the previous year and 30% adjusted operating income growth, with GAAP operating margins approaching 11%. The Affirm Card is a key contributor, pr ...

Industry Overview - Fintech is transforming the global financial landscape by integrating advanced technologies such as AI, blockchain, Big Data, and cloud computing, disrupting traditional banking, payments, and investment models [1] - One of fintech's significant contributions is advancing financial inclusion, providing access to financial services for millions of unbanked and underbanked individuals through digital wallets, mobile banking, and peer-to-peer lending [2] - Fintech has reshaped payments and lending by enhancing convenience and efficiency, with innovations like contactless payments and app-based lending solutions streamlining transactions for consumers and businesses [3] - The industry is strengthening transparency and cybersecurity, with blockchain enhancing trust and AI improving fraud detection and compliance [4] Company Insights Nu Holdings Ltd. (NU) - Nu Holdings has a durable revenue base, successfully converting its expanding customer base into recurring income streams that are less vulnerable to macroeconomic volatility [6] - The company is shifting from rapid customer acquisition to monetizing users across various financial services, which strengthens its performance during tighter credit conditions [7] - Nu Holdings emphasizes high-engagement products, expanding revenue through everyday financial activities, which improves average revenue per active user [8] - The company's technology-driven platform allows for efficient revenue flow and operating leverage, distinguishing it from legacy banks facing rising costs [9] - The Zacks Consensus Estimate for NU's 2026 sales and EPS implies a year-over-year increase of 34.3% and 41.9%, respectively [9] Affirm Holdings, Inc. (AFRM) - Affirm's growth is driven by merchant expansion and rising consumer engagement, with new initiatives like the Affirm Card and international expansion providing additional growth avenues [10] - The company's business model combines payments and lending, with a focus on 0% financing helping to expand its network, despite some pressure on revenue take rates [10] - Affirm's no-late-fee model and transparent pricing resonate with younger borrowers, while profitability is closely tied to funding costs and credit performance [11] - The company is deepening its role at the point of sale through product innovation and ecosystem expansion, with a Zacks Consensus Estimate for fiscal 2026 sales and EPS indicating year-over-year growth of 28.5% and 640%, respectively [12] Interactive Brokers Group, Inc. (IBKR) - Interactive Brokers is a fintech leader focused on automation and innovation, evolving into a tech-first brokerage that offers efficient trading tools [13] - The company automates nearly every aspect of the brokerage process, significantly lowering costs compared to traditional brokers [13] - IBKR provides API-driven solutions and customizable platforms for algorithmic traders and financial advisors, reflecting its tech roots and focus on client empowerment [14] - The revenue model is based on monetizing data and transaction flow rather than traditional financial services, allowing for high margins while scaling globally [15] - The Zacks Consensus Estimate for IBKR's 2026 sales and EPS implies year-over-year growth of 6.1% and 7.3%, respectively [16]

Affirm Holdings ( AFRM ) is facing a delay in a major catalyst in its business as the Federal Reserve decided not to touch interest rates last week, amid resurgent inflation fears. While Affirm depends on lower interestAnalyst’s Disclosure: I/we have a beneficial long position in the shares of AFRM, SOFI, UPST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I ...

Core Insights - The global payments landscape is transitioning to a hybrid model that integrates traditional card networks with embedded finance and point-of-sale lending, with companies like Mastercard and Affirm positioned at different ends of this transformation [1] Group 1: Mastercard Overview - Mastercard has a market cap of $445.9 billion and benefits from global payment volumes and cross-border transactions, with a 7% year-over-year increase in Gross Dollar Volume and a 14% growth in cross-border volumes in Q4 2025 [4] - The company's asset-light structure allows for revenue generation primarily through transaction fees, with value-added services growing 22% year-over-year on a currency-neutral basis in Q4 [5] - Mastercard is advancing into digital assets through initiatives like its Crypto Partner Program, positioning itself as a key enabler in the blockchain ecosystem [6] - The company has integrated artificial intelligence to enhance fraud detection and transaction intelligence, improving approval rates while minimizing fraud [7] - Adjusted operating expenses rose 13.8% year-over-year in Q4, with expectations of an 11.6% increase in 2026, and its long-term debt-to-capital ratio stands at 70.2% [8] Group 2: Affirm Overview - Affirm has a market cap of $15.4 billion and achieved 30% year-over-year revenue growth in Q2 of fiscal 2026, driven by strong transaction volumes and user engagement [9] - The Affirm Card experienced a 159% year-over-year growth in GMV, with a business model that blends payments and lending [10] - Affirm's no-late-fee structure and transparent pricing appeal to younger demographics, with profitability linked to funding costs and credit performance [11] - The company is innovating at the point of sale and expanding its ecosystem, with initiatives aimed at increasing transaction frequency and long-term growth [12] - Total operating expenses increased 15.5% year-over-year in Q2, primarily due to higher provisions for credit losses and elevated processing expenses [13] Group 3: Comparative Estimates - Zacks Consensus Estimates predict Mastercard's 2026 sales and EPS growth at 12.7% and 14.6%, respectively, while Affirm's estimates indicate 28.5% sales growth and a staggering 640% EPS increase for fiscal 2026 [14] Group 4: Valuation and Price Performance - On a price-to-sales basis, Mastercard is valued at 11.76X forward revenues, significantly higher than Affirm's 3.14X, indicating potential for growth in Affirm [18] - Mastercard trades below its average analyst price target of $662.92, suggesting a 33.6% potential upside, while Affirm trades below its target of $84.65, indicating a 93.2% potential upside [19] Group 5: Conclusion - Mastercard offers stability and strong margin visibility through its asset-light network, while Affirm is positioned for faster growth driven by expanding partnerships and product innovation [20] - For investors seeking rapid gains, Affirm currently presents a more attractive opportunity despite both companies holding a Zacks Rank 3 (Hold) [22]

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Buy now, pay later company Affirm has options for dropping less profitable lending; asking some consumers for down payments; and requiring more financial information from consumers if they become more financially stressed in a potential U.S. economic downturn, Chief Financial Officer Rob O'Hare said Tuesday. His comments were hypothetical, but if ca ...

Core Insights - Affirm is adapting to a contractionary environment by tightening loan offerings primarily at the lower end of the credit spectrum, expecting minimal profitability headwinds despite a slowdown in GMV under stress assumptions [1] - The company underwrites every transaction, originating about $150 million in loans daily, and monitors early repayment signals as key indicators for underwriting and delinquency trends [2] - Management noted steady consumer demand despite elevated oil prices, with no immediate evidence of consumer stress, although prolonged high prices could impact behavior over time [3] Funding and Capital Structure - Affirm's recent ABS transaction was upsized from $500 million to $750 million, oversubscribed by approximately 2.5 times, indicating strong demand in funding markets [6][8] - The company has around $4 billion in untapped warehouse capacity and maintains committed forward flow relationships to ensure funding through economic cycles [10] - The recent ABS transaction is characterized as an on-balance-sheet funding vehicle, allowing Affirm to retain more loan economics compared to off-balance-sheet sales [11] Product Growth and Economics - The Affirm Card has reached about 16% of GMV, growing 150% year-over-year, and is expected to drive higher annual spend per cardholder [5][12] - The card is primarily a second-use product for existing users, with a long-term target of $7,500 annual spend per cardholder based on discretionary spending data [13] - Product mix is a significant driver of profitability, with the card having a higher interest-bearing mix and benefiting from repeat use among borrowers [14] Strategic Initiatives and Partnerships - Affirm is expanding its 0% APR offerings and sees potential for growth in this area, while also emphasizing the importance of interest-bearing products [15][16] - The company is leveraging merchant optimization tools like AdaptAI and BoostAI to enhance offer sets and improve unit economics [17] - Affirm is pursuing international expansion, including a partnership with QuickBooks to finance business-to-consumer invoice payments, although material impact is not expected this year [19][20] Capital Allocation and Future Outlook - Management highlighted an existing buyback program for convertible bonds and is focused on the 2026 convertible maturity, with potential M&A opportunities being evaluated [21] - The company aims to participate in various shopping environments and is working towards an "auto-on" release for Shop Pay Installments in the U.K. [18]

Core Insights - Fintech stocks, particularly Upstart Holdings and Affirm Holdings, have experienced significant declines, with stock prices falling approximately 36% year to date [1] - Despite the stock price drops, both companies reported strong business growth in the most recent quarter, with Upstart achieving an 86% increase in loan originations and Affirm seeing a 36% rise in gross merchandise volume [2] Company Performance - Upstart's loan originations grew by 86%, revenue increased by 64%, and it reported a net income of $18.6 million for the third consecutive quarter of profitability [2] - Affirm's gross merchandise volume rose by 36%, revenue increased by 30%, and net income grew by 61% year over year [2] Valuation Concerns - Both companies are facing challenges related to high valuations, trading at around 58 times earnings, down from much higher P/E ratios of 168 for Upstart and 107 for Affirm in December [3] - Concerns about credit quality are prevalent, with investors worried about rising defaults and weakening credit conditions potentially worsening by 2026 [4] Future Opportunities - The recent stock dips may present buying opportunities, as both companies have applied for bank charters, which could enhance their business models [5][6] - Affirm's application for an industrial loan charter will enable it to accept deposits and provide its own loans, potentially lowering funding costs and improving earnings [5] - Upstart's application to become a full-service national bank could allow it to generate its own loans and interest income, diversifying its revenue streams beyond fees for its AI-driven loan processing technology [6]

Core Viewpoint - Affirm Holdings stock is experiencing bearish pressure due to a combination of elevated inflation expectations, a restrictive rate environment, and a weaker appetite for high-multiple technology stocks [2]. Group 1: Stock Performance - Affirm Holdings shares were down 6.01% at $44.70 at the time of publication on Wednesday [3]. - The stock carries a Buy rating with an average price target of $85.88 according to analyst consensus [3]. Group 2: Analyst Actions - Truist Securities has a Buy rating but lowered its target to $71.00 on February 20 [3]. - Baird initiated coverage with a Neutral rating and a target of $55.00 on February 20 [3]. - Cantor Fitzgerald maintains an Overweight rating with a target of $85.00 as of February 9 [3].

Core Viewpoint - The private-credit market is experiencing stress, particularly affecting funds that hold consumer and small-business loans from companies like Affirm and Block [1] Group 1 - A fund that invests in consumer and small-business loans is facing challenges [1] - Companies involved in this fund include Affirm and Block, indicating a focus on fintech and digital payment sectors [1]