Group 1: Tariffs and Economic Impact - President Trump intends to impose import tariffs on all goods made outside the U.S. to support the America First initiative, aiming to boost the manufacturing industry and benefit factory workers [1] - Tariffs are expected to increase prices and decrease trade, as importers may pass the additional costs onto consumers, making foreign products more expensive [2] - Anticipation of tariffs ranging from 10% to 25% on imports and 60% on Chinese products may lead to stockpiling behavior among consumers and companies [3] Group 2: Company-Specific Insights - Whirlpool, a major U.S. appliance manufacturer, is expected to benefit from the tariffs, as it employs over 28,000 Americans and produces appliances domestically [4] - The company has reported a 4.3% year-over-year decline in sales of major domestic appliances in North America, contrasting with a 9.1% gain in Asia [7] - Stockpiling ahead of potential tariffs could positively impact Whirlpool's Q4 2024 results by front-loading sales that may have occurred later in 2025 [8] Group 3: Other Companies and Market Dynamics - Best Buy, a consumer electronics retailer, may see an increase in sales due to consumers accelerating their electronics upgrade cycle in anticipation of price spikes from new tariffs [9] - Affirm Holdings, a buy now pay later platform, stands to benefit from increased consumer financing needs as stockpiling occurs, particularly for big-ticket items like home appliances [10][11]

Core Viewpoint - Affirm Holdings, Inc. has entered a long-term capital partnership with Sixth Street, which will invest up to $4 billion in purchasing Affirm loans over the next three years, marking the largest capital commitment in the company's history [1][2]. Group 1: Partnership and Funding - The partnership with Sixth Street allows Affirm to extend more than $20 billion in loans over the next three years, enhancing its payment network while maintaining a capital-efficient approach [2]. - Affirm's total funding capacity has increased by 50% over the past two years, reaching $16.8 billion as of September 30, 2024 [2]. Group 2: Business Growth and Projections - Affirm aims to achieve a fiscal 2025 GMV objective of over $34 billion, with revenues projected to expand at least 20 basis points from the fiscal 2024 figure [3]. - The company is focused on enhancing its relationships with long-term capital partners and regularly adding capacity across various channels to solidify its leadership in the Buy Now, Pay Later (BNPL) space [3]. Group 3: Stock Performance - Over the past year, Affirm's shares have surged by 61.8%, significantly outperforming the industry growth of 24.8% [5]. - Affirm currently holds a Zacks Rank 2 (Buy), indicating positive market sentiment towards the stock [6].

Group 1 - Affirm and Sixth Street have established a long-term capital partnership, with Sixth Street committing to invest up to $4 billion in Affirm loans through a three-year forward flow agreement, enabling Affirm to extend up to $20 billion in loans over the next three years [1][2] - The partnership is designed to provide capital-efficient funding to support Affirm's growth plans, leveraging Sixth Street's expertise in asset-based finance and long-term capital [2] - Affirm's total funding capacity reached $16.8 billion as of September 30, having increased by over 50% in the past two years, with the company generating over $28 billion in gross merchandise volume in the previous 12 months [3] Group 2 - Affirm claims a significant market position, holding a third of the volume and more than half of the revenue in the U.S. pay-later space [3] - The company possesses a "huge competitive moat" due to the complexities of underwriting, requiring substantial infrastructure to effectively utilize data [4] - Affirm has recently partnered with eight additional merchants to enhance flexible pay-over-time options for consumers [4][5]

Core Insights - A new multi-billion dollar joint venture is formed between Affirm Holdings and private-credit firm Sixth Street, with Sixth Street committing $4 billion for loans over three years [1] - The partnership allows Affirm to underwrite short-term installment loans, with the potential to extend over $20 billion in loans during the partnership [2] - The deal is part of a growing trend where alternative-asset managers are increasingly investing in non-bank fintech companies for more efficient financing solutions [3] Group 1 - Sixth Street's upfront capital commitment enables Affirm to offer short-term loans with a repayment period of 4 to 6 months, allowing for a revolving loan structure [2] - The loan sales are set to begin in 2025, indicating a ramp-up period for the partnership [2] - Affirm utilizes various funding models, including warehouse facilities and asset-backed securitizations, distinguishing itself from traditional banks [4] Group 2 - Traditional banks still play a role in the financing supply chain by indirectly financing loans through their balance sheets alongside private-credit funds [5] - The partnership reflects a shift in the financing landscape, where fintech firms are seeking alternative funding sources that can adapt to user demand [3] - Similar deals, such as PayPal's agreement with KKR for loans in Europe, highlight the trend of fintech companies collaborating with private credit firms [4]

Core Viewpoint - Affirm Holdings, Inc. has demonstrated strong performance in the buy-now-pay-later (BNPL) market, significantly outperforming industry benchmarks and showing potential for future growth through strategic partnerships and innovative technology [1][15]. Group 1: Financial Performance - Affirm's shares have increased by 42.3% year-to-date, compared to the industry's 22.3% growth and the broader Zacks Business Services sector's 21.8% rise [1]. - The company has a market capitalization of $22 billion [1]. - The Zacks Consensus Estimate for fiscal 2025 earnings indicates a 68.3% year-over-year improvement, while fiscal 2026 earnings are expected to increase by 206.9% [10]. Group 2: Business Model and Technology - Affirm utilizes advanced technology, including machine learning and artificial intelligence, to enhance payment experiences for consumers and merchants [4]. - The company's proprietary risk model allows for tailored financial products while maintaining low fraud levels and high approval rates [5]. - Affirm's business model benefits from network effects, with approximately 323,000 active merchants and $7.6 billion in gross merchandise volume during the first quarter of fiscal 2025 [6]. Group 3: Strategic Partnerships - Strategic alliances with major companies like Amazon and Apple Pay serve as growth catalysts, providing access to large consumer markets and diversifying revenue streams [7]. - Recent partnerships with JD Sports and Priceline aim to enhance pay-over-time solutions for their clients [7]. Group 4: Market Opportunities - The expanding BNPL market presents a significant opportunity for Affirm, as consumer preference shifts towards installment payment options [8]. - The company is well-positioned to capitalize on this trend, supported by strong cash reserves and cash flow generation [8]. Group 5: Competitive Landscape - Affirm operates in a highly competitive market, facing challenges from established digital payment solutions and other BNPL providers [12]. - The focus on technological advancement incurs significant expenditures, which may impact profitability [11]. Group 6: Valuation - Affirm is currently trading at 6.39X forward 12-month sales, below the industry average of 7.59X, indicating potential undervaluation [13].

Core Viewpoint - Affirm Holdings, Inc. has expanded its partnership with PGIM Fixed Income, which includes a $500 million private purchase of Affirm's loans, enhancing its funding base and merchant partnerships, positioning the company for growth in the buy now pay later (BNPL) market [1][2][3]. Group 1: Partnership and Funding - PGIM Fixed Income's investment in Affirm's loans underscores the quality of Affirm's loan portfolio, following previous investments in Affirm's asset-backed securitizations totaling $10 billion [2]. - Affirm's total funding capacity has increased by 50% over the past two years, reaching $16.8 billion as of September 30, 2024, which will improve its working capital and resource allocation [3]. Group 2: Merchant Network Expansion - Affirm has formed new partnerships with major retailers such as Garmin, Hotels.com, and Living Spaces, expanding its merchant network to over 320,000 partners globally [4]. - The company has experienced a 20% year-over-year increase in merchant growth and is now integrated with more than 60% of U.S. e-commerce, which is crucial as demand for BNPL options rises during the holiday season [4]. Group 3: Financial Projections - Affirm aims to achieve a fiscal 2025 Gross Merchandise Volume (GMV) objective of over $34 billion, with revenues projected to expand by at least 20 basis points from fiscal 2024 [5]. - The combination of enhanced funding capabilities and a growing merchant network positions Affirm to solidify its leadership in the BNPL space and attract more consumers [5]. Group 4: Stock Performance - Over the past year, Affirm's shares have surged by 83.9%, significantly outperforming the industry growth of 28.7% [6].

Core Insights - Affirm has expanded its merchant partnerships by adding eight new merchants, enhancing its payment options for consumers in the U.S. [1] - The company's global network has grown by 20% year over year, now including over 320,000 merchant partners [1] Merchant Partnerships - New merchants include Agape Diamonds, Discount Tire, Ever/body, FullBeauty, Garmin, Hotels.com, Living Spaces, and Sweetwater [1] - The partnerships aim to provide consumers with flexible pay-over-time options during the holiday shopping season [3] Payment Options - The Affirm Card, Affirm App, and top digital wallets allow consumers to access flexible payment options at any retailer [2] - Consumers can choose customized biweekly or monthly payment plans, including a 0% APR option on eligible purchases [2] Market Trends - During Black Friday, BNPL purchases accounted for 10.1% of online transactions and 7.4% of in-store transactions [4] - Affirm's CEO noted strong interest from merchants in 0% promotions as the holiday shopping season approached [4] Company Performance - Affirm accounts for one-third of the volume and over half of the revenue in the U.S. pay later space [5] - The company is preparing for a strong holiday season, indicating robust operational performance [5] Product Enhancements - In October, Affirm upgraded its app to provide easier access to personalized payment terms and interest-free offers [6] - Consumers perceive 0% APR financing options as equally or more valuable than traditional discounts [6]

Core Viewpoint - Affirm Holdings (AFRM) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Affirm Holdings is projected to earn -$0.53 per share for the fiscal year ending June 2025, reflecting a year-over-year change of 68.3% [8]. - Over the past three months, the Zacks Consensus Estimate for Affirm Holdings has increased by 35.3% [8]. Investment Implications - The upgrade in Zacks Rank for Affirm Holdings suggests an improvement in the company's underlying business, which could lead to increased buying pressure and a rise in stock price [5][11]. - The Zacks Rank system maintains a balanced approach, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions [9][10].

Affirm Holdings, Inc. (AFRM) recently shared research findings showing that 71% of Canadians plan to maintain or increase their holiday spending this year despite economic challenges. However, shoppers are adopting a more thoughtful approach, focusing on meaningful purchases, seeking the best deals, and using flexible payment options like buy now, pay later (BNPL) to better manage their budgets.The research reveals that 77% of consumers are adopting a "slow shopping" approach, taking extra time to evaluate ...

Affirm Holdings, Inc. (AFRM) recently partnered with JD Sports, a retailer of sports, fashion and outdoor brands. This collaboration aims to provide customers of JD Sports and Finish Line with pay-over-time options while purchasing products from top brands like adidas, New Balance, Nike and North Face.The move comes ahead of Black Friday and Cyber Monday and customers are expected to benefit from Affirm’s buy now, pay later (BNPL) solutions’ flexibility and transparency. This collaboration brings Affirm’s c ...