Affirm CEO says 'demise' of the American consumer is 'greatly exaggerated'

Core Viewpoint - Affirm's CEO Max Levchin expresses confidence in the resilience of the US consumer, countering recession narratives by highlighting strong demand for the company's buy now, pay later (BNPL) services [1][7] Company Performance - Affirm reported a 36% year-over-year increase in gross merchandise volume (GMV) for the past quarter, although guidance suggests a slowdown to 30% growth in Q3 and 25% in Q4 [5] - The company has maintained "very solid" repayment curves over the past eight quarters, indicating stable financial performance among borrowers [2] Consumer Sentiment - Despite Affirm's positive outlook, the University of Michigan's Index of Consumer Sentiment indicates a decline, with the index at 57.3 in February, 20% below last year's peaks [3][4] - This suggests that while consumers are utilizing BNPL services, they are doing so amidst concerns about inflation and labor market conditions [4] Competitive Position - Levchin asserts that Affirm's proprietary AI underwriting is crucial for maintaining high credit quality, allowing the company to identify "healthy" consumers [3] - The company has established a strong brand presence, with 96% of transactions coming from existing consumers, positioning itself as a competitor to major players like PayPal [6]