Core Insights - Affirm is launching two integrations to enhance its buy now, pay later (BNPL) services, strengthening partnerships with Google and Stripe [1][4] - The integration with Google Chrome allows U.S. shoppers to select Affirm directly from the browser's autofill menu at checkout, facilitating easier access to installment payment plans [2][3] - The integration with Stripe Terminal enables in-store shoppers to scan a QR code for financing options, with repayment terms ranging from 30 days to 60 months [4] Integration with Google - Affirm's integration with Google Chrome's autofill menu allows eligible consumers to choose biweekly or monthly payment plans for purchases between $35 and $30,000 [3] - This feature requires no additional setup for merchants and will be automatically activated on select sites, aiming to make the payment process more seamless [3] Integration with Stripe - Affirm becomes the first BNPL provider to integrate with Stripe Terminal, allowing consumers to apply for financing in participating stores by scanning a QR code [4] - This integration is expected to help merchants drive growth and meet customer needs more effectively [4] Consumer Behavior Insights - Research indicates that nearly three-quarters of consumers' last non-grocery retail purchases were made in person, highlighting the importance of in-store payment options [5] - BNPL services influence consumer purchasing behavior, with many users delaying purchases or opting for cheaper items if BNPL is unavailable [6] - A significant portion of consumers relies on BNPL out of necessity, often linked to their income levels [6] Recent Partnerships - Affirm has been actively forming partnerships to boost adoption, including a recent collaboration with Shopmonkey for car repair shops and an expansion of its partnership with travel search engine Kayak [7]

Core Insights - Affirm Holdings, Inc. (AFRM) has expanded its partnership with Google Pay, integrating its payment options into Chrome's autofill feature, enhancing accessibility for customers [1][8] - The integration allows U.S. customers to select "Pay over time options" for purchases ranging from $35 to $30,000, with interest rates starting at 0% APR and no hidden fees [2][8] - The transaction count for Affirm increased by 46% year-over-year in Q3 of fiscal 2025, indicating strong consumer interest and adoption of its payment solutions [4][8] Company Developments - The new autofill feature provides a secure and efficient checkout process for both new and existing Affirm users, requiring no additional integration from merchants [3] - Affirm's flexible payment plans are designed to enhance consumer purchasing power and alleviate financial strain, potentially leading to increased transaction volumes and consumer interest income [4] Competitive Landscape - Key competitors in the Buy Now, Pay Later (BNPL) market include PayPal Holdings, Inc. (PYPL) and Visa Inc. (V), both of which have established strong market positions [5][6] - PayPal processed 6.2 billion transactions in Q2 of 2025, with net revenues rising 5.1% year-over-year to $8.3 billion [5] - Visa's processed transactions increased by 10% year-over-year in Q3 of fiscal 2025, with total revenues advancing 14% year-over-year [6] Financial Performance - Affirm's stock has surged by 189.3% over the past year, significantly outperforming the industry average growth of 47.4% [7] - The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings suggests a 103% improvement from the previous year, with revenue growth projected at 37.2% year-over-year [10] - Affirm currently trades at a forward price-to-sales ratio of 6.17, above the industry average of 5.84 [9]

Industry Overview - Internet stocks are benefiting from the ongoing digitalization wave, which is driving rapid adoption of AI and cloud computing [1] - The deployment of standalone 5G networks and AI-powered services is increasing the usage of social media platforms, digital advertising, online delivery models, streaming, and e-commerce growth [2] - Despite macroeconomic challenges, these factors are expected to positively impact Internet stocks during the earnings season [2] Company Earnings Insights - Four Internet stocks, Globant (GLOB), NICE (NICE), Affirm Holdings (AFRM), and Bill Holdings (BILL), are well-positioned to exceed earnings estimates this season [3] - Meta Platforms reported a 5% increase in ad conversions on Instagram and 3% on Facebook due to its new AI-powered recommendation model [5] - Microsoft’s AI assistants have reached 100 million monthly active users, and Alphabet is enhancing user experience through AI in its Search features [6] - Amazon's advertising business grew 23% year-over-year to $15.69 billion, attributed to successful AI-powered optimization [7] Company-Specific Projections - Globant expects revenues of at least $612 million for Q2 2025, reflecting a 4.2% year-over-year growth, with earnings estimated at $1.52 per share [12][13] - NICE anticipates non-GAAP revenues of $709-$719 million for Q2 2025, indicating 7% year-over-year growth, with earnings projected between $2.93 and $3.03 per share [15][16] - Affirm Holdings forecasts GMV between $9.4 billion and $9.7 billion for Q4 fiscal 2025, with revenues expected to be between $815 million and $845 million [17] - BILL Holdings expects revenues between $370.5 million and $380.5 million for Q4 fiscal 2025, suggesting year-over-year growth of 8-11% [19][20]

Affirm Holdings (AFRM) closed at $78.96 in the latest trading session, marking a +2.17% move from the prior day. This move outpaced the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, added 0.35%. The stock of operator of digital commerce platform has risen by 11.89% in the past month, leading the Computer and Technology sector's gain of 3.95% and the S&P 500's gain of 1.21%.Market participants will be closely following the financial results of Affirm Holdin ...

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on their value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Aims to capitalize on price trends by evaluating recent price changes and earnings estimate revisions [5] VGM Score - Combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and positive momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in portfolio building [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - For optimal returns, investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with a 3 (Hold) rank should also have A or B Scores to maximize upside potential [10] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial in stock selection, as stocks with lower ranks but high Style Scores may still face price declines [11] Company Spotlight: Affirm Holdings - Affirm Holdings, a financial technology company, specializes in payment solutions offering flexible installment loans [12] - Currently rated 3 (Hold) with a VGM Score of B, Affirm has a Momentum Style Score of B and a 10.5% increase in shares over the past four weeks [12][13] - The company has seen upward revisions in earnings estimates, with an average earnings surprise of +102.2% [13]

Company Performance - Affirm Holdings closed at $68.56, reflecting a +1.68% change from the previous day, outperforming the S&P 500's loss of 0.37% [1] - Over the last month, Affirm's shares decreased by 1.37%, while the Computer and Technology sector gained 4.58% and the S&P 500 gained 2.68% [1] Upcoming Earnings - The upcoming earnings disclosure is expected to show an EPS of $0.11, a significant increase of 178.57% year-over-year [2] - Revenue is projected at $839.88 million, representing a 27.41% increase from the same quarter last year [2] Annual Forecast - For the entire year, earnings are forecasted at $0.05 per share, indicating a +102.99% change, while revenue is expected to remain at $3.19 billion, showing no change from the previous year [3] Analyst Estimates - Recent revisions in analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating confidence in performance and profit potential [3][4] - The Zacks Consensus EPS estimate has increased by 7.74% over the past month, and Affirm Holdings currently holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Affirm Holdings has a Forward P/E ratio of 88.98, significantly higher than the industry average of 28.48, suggesting it is trading at a premium [6] - The company has a PEG ratio of 2.49, compared to the Internet - Software industry's average PEG ratio of 2.18 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 73, placing it in the top 30% of over 250 industries [8]

Market Overview - The U.S. equity markets have reached record highs, driven by strong quarterly earnings across all sectors, particularly from blue-chip technology stocks, highlighting the impact of AI infrastructure spending on investor sentiment [1] - Renewed trade deals between the U.S. and its trading partners have contributed to positive market conditions, with investors looking for clarity on potential interest rate cuts from the Federal Reserve [1] Momentum Investing Strategy - Momentum investing is characterized by the strategy of "buying high and selling higher," based on the belief that stocks with established trends are likely to continue in that direction [3] - This strategy has been shown to generate alpha over time and across various market conditions, although it requires skill in detecting trends [4] Screening Parameters for Momentum Stocks - The screening process identifies the top 50 stocks with the best percentage price change over the last 52 weeks, ensuring selection of stocks that have appreciated steadily [5] - From these, the bottom 10 performers over the past week are chosen to identify those experiencing short-term pullbacks [6] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of B or better are prioritized, indicating a higher probability of success [7] Selected Momentum Stocks - Netflix (NFLX) has seen an 86.2% increase over the past year but a 7.3% decline in the last week, earning a Momentum Score of A [8] - Robinhood Markets (HOOD) has surged 381.3% in the past year but dropped 3.3% last week, also holding a Momentum Score of A [10] - Affirm Holdings (AFRM) has gained 148.7% annually with a 5.2% decline last week, resulting in a Momentum Score of B [11]

Core Insights - Visa Inc. and Affirm Holdings are positioned at the forefront of the payments landscape, with Visa as a long-established card network and Affirm as a rapidly growing fintech innovator in the buy now, pay later (BNPL) space [1][2] Group 1: Visa's Position - Visa reported Q2 fiscal 2025 net revenue of $9.6 billion, a 9.3% year-over-year increase, driven by an 8% gain in payments volume and strong cross-border growth [3] - Visa's extensive global network captures over half of the purchase volume in the U.S. and billions of digital transactions, providing a durable competitive advantage [3][4] - The company returned $5.6 billion to shareholders through buybacks in the last quarter and has a new $30 billion repurchase authorization, indicating strong cash flow [4] - Visa is expanding into digital payments through Visa Direct and investing in real-time payments infrastructure to adapt to a digitizing financial landscape [5] - Visa's business model is primarily fee-based and dependent on banks and merchants, which may be less appealing to tech-savvy consumers seeking speed and flexibility [6] Group 2: Affirm's Growth - Affirm's revenues increased by 36% year-over-year to $783.1 million in Q3 FY25, supported by higher gross merchandise volume and expanded merchant relationships [7] - The active consumer count for Affirm rose to 21.9 million, with transactions per active user growing by 21.7%, indicating rising engagement [7] - Affirm operates outside traditional credit-card networks, partnering with major retailers like Shopify and Amazon, allowing it to directly tap into consumer spending [8] - The company has diversified its funding model with 24 securitizations totaling $12.25 billion and over 150 capital partners, showcasing operational maturity [10] - Affirm is expanding internationally through partnerships and is investing in new offerings like debit cards and B2B tools to diversify its business [11] Group 3: Financial Comparisons - The Zacks Consensus Estimate for Affirm's fiscal 2025 EPS indicates a 101.8% year-over-year improvement, while Visa's is projected at 13.1% [13] - On a price-to-sales basis, Visa trades at 15.04X forward revenues, significantly above the industry average of 6.30X, while Affirm's price-to-sales multiple is at 5.41X, indicating potential for growth [14] - In the past year, Visa has returned 32.5%, while Affirm has delivered a remarkable 127.5% return, reflecting their respective revenue growth and market performance [16] Group 4: Conclusion - Visa continues to dominate global payments with scale and profitability, but its growth is tied to economic activity [19] - Affirm is benefiting from structural tailwinds and a flexible payment model, positioning it for future growth [20] - Despite higher leverage, Affirm's valuation reflects its growth potential, making it a compelling investment opportunity for those seeking exposure to the evolving fintech landscape [21]

In the latest trading session, Affirm Holdings (AFRM) closed at $66.75, marking a -3.12% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.14% for the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.38%. Coming into today, shares of the operator of digital commerce platform had gained 11.02% in the past month. In that same time, the Computer and Technology sector gained 7.37%, while the S&P 500 gained 5.35%. Market participants will b ...

Core Insights - Affirm Holdings Inc (AFRM) is focusing on vertical integration to enhance profitability in the competitive Buy Now, Pay Later (BNPL) industry, amidst regulatory pressures and high interest rates [1][4] Vertical Integration Strategy - The company is taking control of the entire BNPL value chain, including underwriting, loan origination, servicing, and collections, using its own in-house algorithm for creditworthiness assessment [2][9] - This strategy allows for better risk-based pricing, quicker approvals, and greater control over loan performance [2][9] Funding and Profitability - AFRM is increasingly relying on in-house funding, blending its balance sheet with warehouse credit funding to reduce dependence on expensive external capital, thereby improving its net interest margin [3][9] - This structural shift is expected to mitigate the impact of rising costs of funds, which pose challenges to profitability for many BNPL companies [3] Financial Performance - In Q3 of fiscal 2025, AFRM's total revenues increased by 36% year over year, and its adjusted operating margin improved by 860 basis points [4][9] - The Zacks Consensus Estimate for fiscal 2025 earnings indicates a growth of 101.8% compared to the previous year [11] Competitive Landscape - Competitors like PayPal Holdings, Inc. (PYPL) and Block, Inc. (XYZ) have different approaches; PayPal manages the entire value chain efficiently, while Afterpay, part of Block, is less vertically integrated and relies on Block's capital access [5][6] Valuation Metrics - AFRM's shares have increased by 131.9% over the past year, outperforming the industry growth of 41.8% [7] - The company trades at a forward price-to-sales ratio of 5.64, slightly below the industry average of 5.7 [10]