Goldman Sachs Is Pounding the Table on Affirm (AFRM) Stock

Goldman Sachs' Coverage and Affirm's Business Model - Goldman Sachs initiated coverage on Affirm with a "buy" rating and set a price target of $42, implying a 25% upside from the stock's closing price of $33.70 per share [1] - Affirm's strength lies in its diverse portfolio of products for point-of-sale financing and everyday spending, as well as its strong loan underwriting capabilities, which allow it to tap into subprime and near-prime borrowers [1] - The company has a strong track record of achieving well-managed credit outcomes despite growing faster than peers, and its buy-now pay-later and Pay-in-4 payment options are driving strong market share gains [1] AFRM Stock Performance and Market Context - AFRM stock closed up by almost 13% following Goldman Sachs' coverage initiation, but it is still down almost 28% year-to-date (YTD) compared to the S&P 500's 15% gain over the same period [2] - Affirm stock has struggled to build momentum this year, with recent declines following Apple's announcement to discontinue its Apple Pay Later feature, though this may create opportunities for Affirm's integration into Apple's iOS [2] Analyst and Market Sentiment - Goldman Sachs analysts were impressed by Affirm's business model and its potential to become one of the first new closed-loop platforms in the payments ecosystem [1] - Investors are likely to pay closer attention to Affirm following Goldman Sachs' positive review, which could influence future market sentiment and stock performance [2]