Affirm(US:AFRM) Benzinga·2026-01-13 21:03Core Viewpoint - Affirm Holdings Inc's stock is experiencing volatility in response to President Trump's proposal to cap credit card interest rates at 10%, which has implications for the consumer credit market [2][3]. Group 1: Market Reaction and Implications - The proposed cap on credit card rates could disrupt traditional credit issuers, potentially benefiting Affirm by positioning it as a consumer-friendly alternative to revolving credit [3]. - Following the initial rise in stock price due to the proposal, Affirm's shares have declined as the market assesses the long-term effects of the policy change [2][3]. Group 2: Technical Indicators - Affirm's stock is trading 0.2% above its 20-day simple moving average (SMA) and 0.3% above its 100-day SMA, indicating a stable short-term trend [4]. - Over the past year, shares have increased by 38.89%, reflecting strength in the longer-term trend [4]. Group 3: Analyst Predictions and Valuation - Analysts predict a significant earnings surge, with the next earnings report scheduled for February 5 [6]. - The stock carries a Buy Rating with a consensus price target of $84.56, supported by an expected earnings growth of 165% [7]. - Affirm's valuation shows a P/E ratio of 110.7x, indicating a premium valuation despite strong growth expectations [9]. Group 4: Benzinga Edge Rankings - Affirm is classified as a "High-Flyer" with strong momentum (score: 80) and exceptional growth potential (score: 98), but a low value score (17) suggests it is priced for perfection [8]. Group 5: Key Price Levels and Estimates - Key resistance for the stock is at $79, while key support is at $65.50 [9]. - EPS estimate is 61 cents, up from 23 cents year-over-year, and revenue estimate is $1.06 billion, up from $866.38 million year-over-year [9]. Group 6: ETF Exposure - Affirm has significant weight in various ETFs, meaning substantial inflows or outflows could lead to automatic buying or selling of the stock [11].