From Nasdaq: 2025-06-05 08:53:00

Shares of Affirm Holdings, Inc. (AFRM) are on the rise due to product innovation and growth in the buy now, pay later sector. AFRM recently surpassed its 200-day SMA, closing at $54.33, 34.2% below its 52-week high. The company’s expansion into Western Europe and strong customer loyalty are driving factors.

AFRM’s price performance has outpaced the S&P 500 but lags behind industry peers like PayPal and Block. The company’s focus on repeat customers and expansion into everyday consumer categories like home goods is boosting revenue growth. Affirm’s move into international markets could unlock new growth opportunities.

Affirm’s financial health is relatively strong, with a forward sales multiple lower than industry averages. The company’s business model benefits both merchants and consumers, with 0% APR plans driving sales growth. Affirm is also investing in new financial products to deepen customer relationships and drive usage frequency.

Revenue and earnings estimates for Affirm are promising, with strong growth projected for fiscal 2025 and 2026. The company has consistently beaten earnings estimates and expects solid results for the fiscal fourth quarter. However, high debt levels and rising expenses are key concerns for investors.

Affirm faces competition in the crowded BNPL space, with rivals like PayPal and Klarna expanding their offerings. While AFRM’s technical breakout and growth drivers are positive, investors should be cautious of rising expenses and intense competition. Affirm currently holds a Zacks Rank #3 (Hold) status.

For investors seeking potential opportunities, Affirm’s growth prospects and relative valuation discount are attractive. However, risks related to debt levels and competition should be carefully monitored before making investment decisions. Affirm’s recent breakout signals positive momentum, but caution is advised in the dynamic BNPL market.



Read more at Nasdaq: Affirm Stock Moves Above 200-Day SMA: Time to Buy the Bounce?