Core Viewpoint - Affirm Holdings Inc. is responding to competitive pressures in the buy now, pay later (BNPL) market, particularly following Walmart's exclusive partnership with Klarna, by forming a significant new partnership with J.P. Morgan Payments [1][2][4]. Group 1: Competitive Landscape - The BNPL sector is highly competitive, with companies like Affirm and Klarna vying for market share and merchant partnerships [2][3]. - Walmart's decision to partner with Klarna has negatively impacted Affirm's stock, which saw a decline of nearly 12% following the announcement [4][5]. - The competitive dynamics are influenced by evolving consumer preferences and increased regulatory scrutiny, creating a volatile environment for BNPL providers [3]. Group 2: Strategic Partnerships - Affirm's partnership with J.P. Morgan Payments allows U.S. merchants to integrate Affirm's BNPL options into their checkout processes, significantly expanding Affirm's reach [6][9]. - This collaboration is expected to mitigate the impact of losing Walmart as a partner by diversifying Affirm's merchant base [9][10]. - The partnership reinforces Affirm's positioning as a provider that meets critical needs for both merchants and consumers, enhancing its competitive edge [7][10]. Group 3: Financial Performance and Outlook - Affirm's recent Q2 fiscal year 2025 earnings exceeded expectations, with an EPS of $0.23 and a revenue growth of 47% year-over-year [15]. - The company's Gross Merchandise Volume (GMV) grew by 35%, indicating strong demand for its services [15]. - Analysts maintain a Moderate Buy rating for Affirm, with an average price target of $69.76, suggesting potential undervaluation given the current trading price of $46.20 [12][13][16]. Group 4: Investment Considerations - The recent dip in Affirm's stock price may present a buying opportunity for long-term investors, especially in light of the company's strong growth metrics and new strategic partnerships [17][16]. - Affirm's strategy of diversifying its partnerships and expanding into new verticals creates a more resilient business model, less vulnerable to the loss of any single partner [11][17].

Group 1 - Louis Stevens is a former U.S. Army engineer officer with an MBA and a BA in political science, recognized as a leading analyst in the investing community, ranking in the top 0.1% according to TipRanks [1] - Louis created L.A. Stevens Research, which includes the LAS Index, a basket of stocks selected through a proprietary investment method that has consistently outperformed market indices since its inception [2] - The research and investment services provided by Louis cater to a diverse audience, including beginners, busy professionals, and seasoned fund managers [2]

Company Performance - Affirm Holdings closed at $47.38, down 1.95% from the previous trading session, underperforming the S&P 500's loss of 0.33% [1] - The company's shares have decreased by 25.13% over the past month, while the Computer and Technology sector and the S&P 500 lost 7.14% and 4.03%, respectively [1] Upcoming Financial Results - Affirm Holdings is expected to report an EPS of -$0.08, reflecting an 81.4% growth compared to the same quarter last year [2] - The projected revenue for the upcoming release is $781.66 million, which represents a 35.67% increase from the previous year [2] Full Year Projections - For the full year, the consensus estimates indicate an EPS of -$0.15 and revenue of $3.18 billion, showing increases of 91.02% and 36.78% from the prior year [3] - Recent changes in analyst estimates suggest positive sentiment regarding the company's business and profitability [3] Analyst Ratings and Performance - The Zacks Rank system, which evaluates estimated changes, currently ranks Affirm Holdings as 2 (Buy) [5] - The Zacks Consensus EPS estimate has increased by 13.48% in the past month, indicating positive analyst revisions [5] Industry Context - Affirm Holdings operates within the Internet - Software industry, which is part of the Computer and Technology sector, holding a Zacks Industry Rank of 73, placing it in the top 30% of over 250 industries [6] - Strong industry rankings correlate with better stock performance, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [6]

Core Viewpoint - Affirm Holdings Inc is experiencing a decline in stock price, currently trading at $46.87, marking a 3% drop and a 28.3% year-to-date deficit, but there are indications of a potential recovery with a new bull signal emerging [1]. Group 1: Stock Performance - The stock has fallen from a three-year high of $82.52 on February 18, but this decline may be temporary as bullish signals are appearing [1]. - Affirm is currently trading within one standard deviation of its 200-day moving average, a position that historically has led to gains [2]. - In the past three years, similar trading conditions have resulted in Affirm's stock being higher a month later 75% of the time, with an average gain of 27.8%, suggesting a potential rise to just below $60 [3]. Group 2: Market Sentiment - There is a notable unwinding of pessimism in the options market, with a 10-day put/call volume ratio of 1.08, which is higher than 96% of annual readings, indicating a potential tailwind for the shares [4].

Core Viewpoint - Brokerage recommendations, particularly for Affirm Holdings (AFRM), suggest a positive outlook, but their reliability is questioned due to potential biases from brokerage firms [2][4][9]. Brokerage Recommendation Summary - Affirm Holdings has an average brokerage recommendation (ABR) of 1.67, indicating a consensus between Strong Buy and Buy, with 66.7% of the 21 recommendations being Strong Buy [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often fail to effectively guide investors towards stocks with significant price appreciation potential [4][9]. Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which are more reliable indicators of near-term stock performance [7][10]. - The Zacks Rank for Affirm Holdings is 2 (Buy), reflecting a 13.5% increase in the consensus earnings estimate for the current year to -$0.15, indicating growing optimism among analysts [12][13]. Freshness and Timeliness - The ABR may not always be up-to-date, while the Zacks Rank reflects timely revisions based on current business trends, making it a more effective tool for predicting future price movements [11].

Core Insights - Affirm Holdings, Inc. is expanding its payment solutions through partnerships with JPMorgan Chase & Co. and FuturHealth, which will enhance its merchant reach and diversify its consumer base [1] Group 1: Partnerships and Market Expansion - The agreement with J.P. Morgan Payments integrates Affirm's payment solutions into their Commerce Platform, allowing thousands of U.S. merchants to offer pay-over-time plans, potentially driving significant revenue growth [2] - In the healthcare sector, the partnership with FuturHealth will provide pay-over-time options for GLP-1 medications and wellness services, addressing affordability concerns for treatments like Wegovy and Ozempic [3] - Affirm has experienced a 90% year-over-year growth in provider partnerships, positioning the company to expand its influence in healthcare financing [3] Group 2: Financial Performance and Projections - Affirm's Gross Merchandise Volume (GMV) increased by 35% year-over-year to over $10 billion in Q4 2024, with expectations for fiscal 2025 GMV to be between $34.74 billion and $35.34 billion [4] - The strategic collaborations are expected to strengthen Affirm's market presence, drive transaction volume, and enhance credibility, especially as more consumers turn to Buy Now Pay Later (BNPL) solutions amid rising inflation [4] Group 3: Stock Performance - Over the past year, Affirm's shares have gained 36.4%, outperforming the industry growth of 19.3%, and currently holds a Zacks Rank 2 (Buy) [5]

Core Insights - Affirm is expanding its buy now, pay later (BNPL) services through a new partnership with J.P. Morgan Payments, allowing merchants on the J.P. Morgan Payments network to offer Affirm's payment solutions at checkout [1] - The collaboration comes as Affirm experiences significant growth, with active customer numbers reaching 21 million, a 23% increase year over year [2] - The partnership aims to enhance the retail experience by integrating Affirm into J.P. Morgan's Commerce Platform, meeting the rising demand for flexible payment options [3] Industry Developments - Affirm plans to start reporting all payment plans to Experian, which is expected to help consumers build their credit histories and manage finances better [3][4] - The expanded credit reporting initiative aligns with a broader trend in the BNPL industry towards incorporating BNPL loans into credit and underwriting decisions [5] - FICO is also working to include BNPL data in credit scoring, with studies indicating that 85% of consumers who opened new BNPL accounts saw consistent impacts on their FICO scores [6] Consumer Impact - The inclusion of BNPL in credit scoring may lead consumers to avoid "stacking" short-term loans, promoting better debt management and improved credit scores [7]

Core Insights - Affirm has reached an agreement with JPMorgan Chase to offer its buy now, pay later loan services to merchants on JPMorgan's payments network [1][4] - This partnership allows U.S. merchants using JPMorgan for payments to integrate Affirm into their checkout processes, providing consumers with loan options ranging from 30 days to 60 months [1] - The deal follows a similar agreement made by rival Klarna, indicating increasing competition in the buy now, pay later sector as both companies aim for growth and market share [2] Company Developments - Affirm's collaboration with JPMorgan is an expansion of existing banking and processing relationships, enhancing its service offerings [4] - The demand for diverse payment options and seamless transactions is at an all-time high, as noted by JPMorgan's global head of merchant services [3] - The integration of Affirm into JPMorgan's Commerce Platform is aimed at empowering businesses to meet customer expectations in the retail journey [3]

SAN DIEGO, March 25, 2025 /PRNewswire/ -- FuturHealth, a leading provider of personalized weight-loss solutions, today announced the launch of Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth. Now approved FuturHealth customers can use Affirm's flexible, transparent pay-over-time options to purchase medications, including branded GLP-1 options such as Wegovy and Ozempic, as well as personalized meal plans, consultations, and lab services. These medications ...

Core Viewpoint - Affirm Holdings Inc. faces significant stock market volatility following Walmart's decision to partner exclusively with Klarna as its BNPL provider, raising concerns about long-term revenue and market share implications for Affirm [1][3][12] Competitive Landscape - The BNPL market is highly competitive, with major players like Klarna and Afterpay vying for market share alongside Affirm, necessitating strong merchant partnerships and consumer attraction [1][2] - Walmart's exclusive partnership with Klarna underscores the intense competition in the BNPL sector, presenting a notable setback for Affirm [2][3] Market Reaction - Affirm's stock price dropped approximately 12% on the day Walmart announced its partnership with Klarna, reflecting investor concerns about potential revenue loss [3] - The market's reaction may overestimate the long-term damage to Affirm, as the company maintains a diversified merchant network [4] Business Resilience - Affirm boasts a diverse network of over 337,000 active merchants and strategic partnerships with major companies like Shopify, Amazon, and Target, which support continued growth [5][6] - The company is expanding into new markets, including the UK and Canada, and diversifying into various verticals, which mitigates the impact of losing any single partnership [6] Competitive Advantages - Affirm's competitive advantages include a transparent fee structure, advanced machine learning underwriting, and flexible Adaptive Checkout technology, which differentiate it in the BNPL sector [7] - The company's Capital Strategy 2.0 focuses on stable funding and operational efficiency, reinforcing its market position [7] Financial Performance - Affirm's Q2 2025 earnings report showed strong performance, with an EPS of $0.23, exceeding analyst expectations, and a year-over-year revenue growth of 47% [8][9] - The company projects an Adjusted Operating Income margin of 21-23% for the next quarter, indicating management's confidence in its growth trajectory [8][9] Stock Forecast - Analysts project a 12-month stock price forecast for Affirm at $69.76, representing a 39.81% upside potential, with a Moderate Buy rating based on 20 analyst ratings [9] Long-Term Outlook - Despite the setback from losing Walmart as a partner, Affirm's inherent strengths and opportunities in the expanding BNPL market suggest resilience and growth potential [12] - The recent stock dip may present a buying opportunity for long-term investors, as Affirm's innovation capacity and established fintech position indicate a positive growth trajectory [13]