Have you been paying attention to shares of Affirm Holdings (AFRM) ? Shares have been on the move with the stock up 39.2% over the past month. The stock hit a new 52-week high of $80.72 in the previous session. Affirm Holdings has gained 32.5% since the start of the year compared to the 12.9% move for the Zacks Business Services sector and the 9.2% return for the Zacks Financial Transaction Services industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Affirm Holdings (AFRM) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Affirm Holdings currently ...

Core Insights - Affirm has experienced significant stock appreciation, with a 677% increase since the start of 2023, and a recent surge of over 20% following strong earnings results [2][1] - The company is capitalizing on the growing popularity of Buy Now, Pay Later (BNPL) services, particularly among younger consumers, which has led to impressive growth metrics [1][4] Company Performance - In the most recent quarter, Affirm reported a 35% growth in gross merchandise volume (GMV) and a 47% increase in revenue year-over-year, positioning it as one of the fastest-growing companies in the fintech sector [4] - Affirm's partnerships with major merchants like Amazon and Apple are expected to further enhance its revenue growth, particularly with the integration of BNPL services into Apple Pay [5] Business Model and Sustainability - Affirm's business model focuses on individual loans for each transaction, helping consumers avoid high-interest debt, with only 28% of its products being interest-free loans [3][6] - The company has increased its lending capacity to $22.6 billion from $15.5 billion year-over-year, indicating strong demand and trust from debt investors [7] Financial Health - Affirm maintains a robust balance sheet with $1.8 billion in cash and generated over $600 million in free cash flow in the past year, reflecting its financial stability [8] - The company is building additional revenue streams, such as the Affirm Card, which has reached 1.7 million users, enhancing its presence in everyday transactions [6] Market Position and Valuation - CEO Max Levchin envisions Affirm as a diversified financial company akin to American Express, with Affirm's revenue growth of 46% compared to American Express's 10% year-over-year growth justifying a higher valuation [10] - Given the accelerating growth and potential from Apple Pay integration, Affirm's stock is considered a solid long-term buy despite its volatility [11][12]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Affirm Holdings (AFRM) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Affirm Holdings is one of 288 individual stocks in the Business Services sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of ...

Financial technology (fintech) represents a transformative investment space in a hybrid sector merging finance and technology. The companies featured in the space encompass a variety of services, such as online banking, peer-to-peer payments, insurance, cryptocurrency and cybersecurity, among others. They are relevant because they streamline financial services, apart from enhancing efficiency and security through innovations like mobile banking, online investing and payment processing.The financial technolo ...

PayPal Inc. co-founder and Affirm’s CEO Max Levchin on center stage during day one of Collision 2019 at Enercare Center in Toronto, Canada.Affirm, the online lender founded by Max Levchin, expanded beyond credit and entered the debit market four years ago with a card that let users pay over time. Now the company is making it possible for banks to offer that service to their customers.Affirm, which pioneered the buy now, pay later business (BNPL), has partnered with FIS in a deal that will allow the fintech ...

Affirm Holdings (NASDAQ: AFRM ) reported a very strong quarter and continued to demonstrate its progress around profitability. Affirm clearly took advantage of the holiday shopping period and their customer base has remained resilient. Consumers are increasingly shifting towards buy-now-pay-later ("BNPL") operators rather than theAnalyst’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 ho ...

Affirm Holdings, Inc.’s (AFRM) shares gained 21.8% on Feb. 7, reflecting investor optimism about the company's prospects, after a robust quarter. AFRM’s strong quarterly results benefited from higher network revenues and servicing income. Higher transactions, robust repeat customer engagement and a successful holiday shopping season also boosted performance. However, the results were partly offset by an escalating expense level, which was primarily due to a significant increase in provision for credit losse ...

The Affirm Holdings, Inc. logo appears on a smartphone screen in this illustration photo in Reno, ... [+] United States, on December 24, 2024. (Photo by Jaque Silva/NurPhoto via Getty Images)NurPhoto via Getty ImagesAffirm Holdings (NASDAQ: AFRM), a financial technology company that offers services, such as buy now, pay later, and point-of-sale payment solutions, surpassed market expectations in its second quarter of fiscal 2025 (fiscal ends in June), reporting revenue of $866 million and earnings of $0.23 ...