Core Viewpoint - Affirm Holdings (AFRM) is showing potential for a bullish trend as it has recently reached a key support level and surpassed the 50-day moving average, indicating a positive short-term outlook [1]. Technical Analysis - The 50-day simple moving average is a significant indicator for traders and analysts, marking the first sign of an up or down trend, and is currently showing that AFRM is in a bullish phase [2]. - Over the past four weeks, shares of AFRM have increased by 10.7%, reflecting a positive momentum in the stock [2]. Earnings Estimates - Recent revisions in earnings estimates for AFRM show one upward revision with no downward revisions for the current fiscal year, indicating growing confidence among investors [3]. - The consensus estimate for AFRM has also increased, further supporting the bullish sentiment around the stock [3]. - Given the positive technical indicators and earnings estimate revisions, AFRM is recommended for inclusion on investors' watchlists [3].

Industry Overview - Software has become central to technological innovation, benefiting from increased demand for digital transformation and cloud migration, although weakened consumer spending is impacting the industry [1] - Enterprises are delaying large IT expenditures due to a challenging global economy characterized by inflation, high interest rates, and unfavorable foreign exchange rates, which may negatively affect earnings this season [1] Positive Trends - The rise of software-as-a-service (SaaS), cloud platform migration, and demand for hybrid work solutions are significant tailwinds for companies like Affirm Holdings, Block, BILL Holdings, and Atlassian [2] - Increased adoption of cloud services, IoT, AR/VR devices, and 5G deployment are expected to enhance software stock performance this earnings season [3] - The growing threat of cyberattacks is driving enterprises to invest more in cloud-based security solutions, favoring software-defined models over traditional hardware [4] Business Models and Innovations - A customer-centric approach allows users to perform actions with minimal provider intervention, while pay-as-you-go and subscription models ensure recurring revenues [5] - The proliferation of AI-powered solutions in various sectors is expected to benefit industry players [6] Company-Specific Insights - Affirm Holdings is set to report Q3 fiscal 2025 results with a Zacks Rank 1 and an Earnings ESP of +63.27%, projecting revenues of $783.1 million, a 35.9% year-over-year increase [9][10] - Block is scheduled to report Q1 2025 results with an Earnings ESP of +7.52% and a Zacks Rank 3, estimating revenues of $6.18 billion, reflecting a 3.8% year-over-year improvement [13][14] - BILL Holdings is expected to report Q3 fiscal 2025 results with a Zacks Rank 3 and an Earnings ESP of +0.30%, forecasting revenues of $354.8 million, a 9.8% increase year-over-year [15][16] - Atlassian is set to report Q3 fiscal 2025 results with a Zacks Rank 3 and an Earnings ESP of +0.93%, estimating revenues of $1.35 billion, compared to $1.19 billion in the year-ago quarter [18][19]

Core Viewpoint - U.S. stock markets are experiencing high volatility due to tariffs imposed by the Trump administration, leading to significant price drops in several stocks, making them attractive investment opportunities in the short term [1]. Group 1: Recommended Stocks - Affirm Holdings Inc. (AFRM), Marvell Technology Inc. (MRVL), Super Micro Computer Inc. (SMCI), QUALCOMM Inc. (QCOM), and Edison International (EIX) are identified as stocks with strong revenue and earnings potential for 2025, supported by positive earnings estimate revisions in the last 60 days [2]. Group 2: Affirm Holdings Inc. (AFRM) - Affirm Holdings has diverse income streams, expecting revenues between $3.13 billion and $3.19 billion in fiscal 2025, driven by growing active merchant numbers and improving gross merchandise value [3][4]. - Key partnerships, including those with Apple Pay and Hotels.com, are crucial for AFRM's expansion, which has also entered the UK market [4]. - AFRM has an expected revenue growth rate of 37.1% and earnings growth rate of 96.4% for the current year, with a Zacks Consensus Estimate for earnings improving by 53.8% in the last 30 days [5]. - The stock is trading at a 40.5% discount from its 52-week high, with a potential upside of 75.2% based on brokerage target prices [6]. Group 3: Marvell Technology Inc. (MRVL) - Marvell Technology is experiencing strong demand in the data center market, with revenues increasing by 98% year-over-year, driven by AI-related products [7][9]. - MRVL has an expected revenue growth rate of 43.8% and earnings growth rate of 75.8% for the current year, with a slight improvement in earnings estimates [11]. - The stock is trading at a 53.7% discount from its 52-week high, with a potential upside of 219.1% based on brokerage target prices [12]. Group 4: Super Micro Computer Inc. (SMCI) - Super Micro Computer manufactures IT solutions for AI, Cloud, and 5G technologies, with its products gaining traction in the market [13][14]. - SMCI has an expected revenue growth rate of 59.2% and earnings growth rate of 14% for the current year [16]. - The stock is trading at a 64% discount from its 52-week high, with a potential upside of 174.2% based on brokerage target prices [18]. Group 5: QUALCOMM Inc. (QCOM) - QUALCOMM is transitioning to a connected processor firm, benefiting from 5G technology and strategic collaborations, including one with Google for AI solutions [19][20]. - The company has an expected revenue growth rate of 11.9% and earnings growth rate of 16% for the current year, with a slight improvement in earnings estimates [22]. - The stock is trading at a 35.6% discount from its 52-week high, with a potential upside of 68.3% based on brokerage target prices [24]. Group 6: Edison International (EIX) - Edison International plans to invest $26.6 billion to $31.5 billion from 2025 to 2028 to enhance its infrastructure and expand its renewable energy portfolio [25]. - The company has an expected revenue growth rate of 2.8% and earnings growth rate of 19.7% for the current year, with a slight improvement in earnings estimates [28]. - The stock is trading at a 34.6% discount from its 52-week high, with a potential upside of 48.3% based on brokerage target prices [30].

Group 1 - Affirm Holdings closed at $49.13, reflecting a +1.92% increase from the previous day, outperforming the S&P 500's gain of 0.74% [1] - The stock gained 1.73% over the previous month, surpassing the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77% [1] Group 2 - The upcoming earnings report on May 8, 2025, is expected to show an EPS of -$0.08, which is an 81.4% increase compared to the same quarter last year, with revenue anticipated at $783.11 million, indicating a 35.92% increase year-over-year [2] - Full-year Zacks Consensus Estimates predict earnings of -$0.06 per share and revenue of $3.18 billion, representing year-over-year changes of +96.41% and +37.08%, respectively [3] Group 3 - Recent changes to analyst estimates for Affirm Holdings suggest a favorable outlook on the company's business health and profitability [4] - The Zacks Rank system indicates that Affirm Holdings is currently rated 1 (Strong Buy), with a 56.58% increase in the EPS estimate over the last 30 days [6] Group 4 - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 87, placing it in the top 36% of all industries [7]

Core Viewpoint - The Schall Law Firm is investigating claims against Affirm Holdings, Inc. for potential violations of securities laws following a significant drop in its stock price after losing a major partnership with Walmart to rival Klarna [1][2]. Group 1: Company Overview - Affirm Holdings, Inc. is a fintech company that offers Buy Now, Pay Later (BNPL) services [2]. - The company has recently faced challenges due to competition, particularly from Klarna, which has taken over as Walmart's exclusive BNPL provider [2]. Group 2: Stock Performance - Following the announcement of Klarna replacing Affirm as Walmart's BNPL provider, Affirm's shares fell by more than 12.7% the next day [2]. Group 3: Legal Investigation - The investigation by the Schall Law Firm focuses on whether Affirm made false or misleading statements or failed to disclose important information to investors [2].

Core Insights - Affirm will start reporting all pay-over-time loans to TransUnion from May 1, including Pay in 4 and longer-term monthly installments [1] - Transactions will be visible on consumers' TransUnion credit files but will not affect traditional credit scores; future credit scoring models may incorporate this data [2] - Affirm's initiative aims to make its financial products more mainstream, with 53% of non-BNPL users likely to consider using it if it could improve their credit scores [3] Industry Impact - Affirm's loan reporting to TransUnion is seen as a significant milestone for the BNPL industry, allowing millions of consumers to receive credit for their payment behavior [4] - The company has also begun furnishing information to Experian, expanding its credit reporting to include pay-over-time products [5] - The evolution of BNPL into a trusted service is emphasized by Affirm's CEO, highlighting the control consumers have over their payment schedules [5]

Group 1 - Pomerantz LLP is investigating claims on behalf of investors of Affirm Holdings, Inc. regarding potential securities fraud or unlawful business practices by the company and its officers or directors [1] - On March 17, 2025, Klarna announced it would replace Affirm as the exclusive provider of Buy Now, Pay Later loans for Walmart, leading to a significant drop in Affirm's stock price by $6.38 per share, or 12.74%, closing at $43.70 per share on March 18, 2025 [3]

Core Insights - The fintech sector is experiencing significant growth, with the global market expected to reach $1.13 trillion by 2032, growing at a CAGR of 16.2% from 2025 to 2032 [2] - Block (XYZ) and Affirm (AFRM) are key players in this sector, each leveraging unique strengths to capitalize on market opportunities [1][2] Company Analysis: Block (XYZ) - Block is seeing strong engagement with its Cash App, which had 2.5 million paycheck deposit actives in December, marking a 25% year-over-year increase [3] - Cash App Borrow has reached 5 million monthly active users, contributing to the ecosystem's growth [4] - The BNPL platform of Block grew 19% year-over-year, achieving $10.3 billion in Gross Merchandise Value (GMV) in Q4 2024 [5] - Investments in AI and open-source innovation are expected to enhance long-term growth and operational efficiency [6] Company Analysis: Affirm (AFRM) - Affirm is benefiting from strong consumer demand for flexible payment options, with over 337,000 active merchant partners as of December 31, 2024 [7] - The company reported a 34.7% year-over-year increase in GMV, reaching $10.1 billion in Q2 of fiscal 2025 [8] - Strategic partnerships, including collaborations with Shopify and Revolve Group, are facilitating international expansion [9][10] Price Performance and Valuation - In the trailing twelve months, AFRM shares increased by 31.7%, while XYZ shares decreased by 24.8% [11] - Valuation metrics indicate that both stocks are currently overvalued, with AFRM trading at a forward Price/Sales ratio of 3.53X compared to XYZ's 1.24X [13] Earnings Estimates - The Zacks Consensus Estimate for XYZ's 2025 earnings is $4.12 per share, reflecting a 22.26% year-over-year increase [16] - AFRM's consensus estimate indicates a loss of 6 cents per share for fiscal 2025, but this represents a 96.41% year-over-year improvement [16] - AFRM has consistently beaten earnings estimates, with an average surprise of 84.09%, compared to XYZ's 11.25% [17] Conclusion - Affirm's strong fundamentals, positive earnings outlook, and expanding international presence make it a more attractive investment compared to Block, which faces macroeconomic challenges and stiff competition [17][18]

Core Viewpoint - Affirm Holdings, Inc. and PayPal Holdings, Inc. are significant players in the fintech sector, each reshaping consumer payment methods with innovative solutions. PayPal is expanding its ecosystem, while Affirm is establishing itself in the buy now, pay later (BNPL) market, appealing to modern consumers [1][2]. Group 1: Affirm Holdings, Inc. - Affirm is a major player in the rapidly growing BNPL segment, offering transparent payment terms and zero hidden fees, which attract younger consumers [3][4]. - The company has a growing base of 21 million active consumers and 337,000 active merchants, indicating a robust ecosystem [4]. - Affirm is diversifying into broader financial services, developing debit products, and exploring banking integrations, which expands its addressable market and revenue streams [5]. - The company reported cash and cash equivalents of $1.2 billion, an 18.5% increase from the previous fiscal year, and generated $312 million in net cash from operations, up from $74.3 million year-over-year [7]. - Analysts project a year-over-year sales growth of 36.9% and EPS growth of 96.4% for Affirm in fiscal 2025, with positive trends in EPS estimates [12]. - Affirm's stock gained 30.8% over the past year, reflecting significant volatility but potential upside for risk-tolerant investors [14]. Group 2: PayPal Holdings, Inc. - PayPal is a well-established leader in digital payments with 434 million active users, including services like Venmo and cryptocurrency trading [8]. - Despite its scale, PayPal's growth has slowed, facing competition from platforms like Square and Affirm, and its growth prospects are less exciting compared to Affirm's [9][11]. - PayPal's cash and cash equivalents decreased by nearly 28% to $6.6 billion, while long-term debt rose to $9.9 billion, although cash flow improved to $7.5 billion from $4.8 billion year-over-year [11]. - Analysts forecast modest growth for PayPal, with a projected sales increase of 3.7% and EPS growth of 7.5% for 2025, with declining trends in EPS estimates [12]. - PayPal's stock has been more stable, reflecting its mature business model, but it has seen a 3% decline over the past year [14]. Group 3: Valuation and Investment Outlook - Affirm is trading at a higher price-to-sales (P/S) ratio of 3.43 compared to PayPal's 1.77, indicating market optimism about Affirm's growth potential [17]. - While Affirm presents higher risk, it also offers higher potential rewards, especially with its expansion strategies [17]. - PayPal is viewed as a safer investment for conservative investors, but with a lower growth ceiling compared to Affirm [17]. - In conclusion, Affirm is seen as a more promising investment due to its growth potential in the BNPL sector, while PayPal offers stability and a proven track record [19].

Industry Overview - Financial technology (fintech) is a transformative investment space merging finance and technology, offering services like online banking, peer-to-peer payments, insurance, cryptocurrency, and cybersecurity [1] - The fintech space is expected to benefit from expanding transaction volumes due to the widespread adoption of digital means, accelerated by the pandemic [2] - The innovative nature of fintech positions it for significant growth, driven by consumer behavior shifting towards digital platforms for convenience and cost-effectiveness [4] Catalysts for Growth - The performance of the fintech sector is inversely related to interest rates; a recent reduction in the Federal Reserve's benchmark interest rates is expected to benefit fintech companies [3] - The rise of artificial intelligence (AI) and machine learning is revolutionizing banking, payments, and investments, providing efficient and secure financial solutions [5] Recommended Stocks - Five fintech stocks are recommended for long-term investment: Affirm Holdings Inc. (AFRM), StoneCo Ltd. (STNE), ACI Worldwide Inc. (ACIW), Coinbase Global Inc. (COIN), and OppFi Inc. (OPFI) [2][6] Company-Specific Insights Affirm Holdings Inc. (AFRM) - Affirm has strong revenue growth from diverse income streams, expecting revenues of $3.13-$3.19 billion in fiscal 2025, driven by growing active merchant numbers and improving gross merchandise value [7] - Key partnerships, including those with Apple Pay and Hotels.com, are crucial for Affirm's expansion, including a recent entry into the UK market [8] - Affirm's expected revenue and earnings growth rates are 36.9% and 96.4%, respectively, with a 60% improvement in earnings estimates over the last 30 days [9] - The average short-term price target indicates a potential increase of 70.6% from the last closing price of $40.76, suggesting a maximum upside of 111% [10] StoneCo Ltd. (STNE) - StoneCo is a leading provider of point-of-sale payment processing services, enabling businesses to accept various payment methods [11] - The company offers a full suite of products for e-commerce transactions and client management, utilizing transaction data for credit assessment [12] - StoneCo's expected revenue and earnings growth rates are 4.1% and -6.7%, respectively, with a 9.6% improvement in earnings estimates over the last 30 days [13] - The average short-term price target suggests a potential increase of 12.2% from the last closing price of $11.83, indicating a maximum upside of 86% [13] ACI Worldwide Inc. (ACIW) - ACI Worldwide provides software solutions for digital payments, powering electronic payments for over 5,000 organizations globally, including major financial institutions [15][16] - The company offers real-time payment capabilities and a comprehensive omni-channel payments experience [17] - ACIW's expected revenue and earnings growth rates are 6.8% and 6.1%, respectively, with a 2.6% improvement in earnings estimates over the last 30 days [18] - The average short-term price target indicates a potential increase of 22.9% from the last closing price of $51.31, suggesting a maximum upside of 38.4% [18] Coinbase Global Inc. (COIN) - Coinbase provides financial infrastructure for the crypto economy, offering a user-friendly platform for consumers and sophisticated trading features for experienced users [19][20] - The expected revenue and earnings growth rates for Coinbase are 26.2% and 0.7%, respectively, with a 2.7% improvement in earnings estimates over the last 30 days [21] - The average short-term price target indicates a potential increase of 62.7% from the last closing price of $172.21, suggesting a maximum upside of 179.1% [22] OppFi Inc. (OPFI) - OppFi operates a financial technology platform that helps banks provide credit access to consumers, focusing on those turned away by mainstream options [23] - The expected revenue and earnings growth rates for OppFi are 9.7% and 12.6%, respectively, with a 10.3% improvement in earnings estimates over the last 60 days [25] - The average short-term price target indicates a potential increase of 38.4% from the last closing price of $8.35, suggesting a maximum upside of 55.7% [25]