Is Affirm a profitable company?
Investors are also looking at its path to profitability. In the Barclays 2022 Virtual Emerging Payments and FinTech Forum, Linford reiterated Affirm's target of achieving sustained profitability by mid-2023. This might be ahead of some analysts' estimates.
Affirm posted an operating loss of $227 million. That includes $102.4 million in expense related to warrants granted to Amazon in November 2021. Adjusted operating income hit $4 million, down 18%. Net loss shrank to $54.7 million vs.
Contrarian investors will point out that analysts still expect Affirm's revenue to increase 54% in fiscal 2022 (which ends this month) and grow another 42% to $1.9 billion in fiscal 2023. Based on those estimates, the stock still looks pretty cheap at just three times next year's sales.
Chiaverini initiated coverage of Affirm (ticker: AFRM) at Underperform on Wednesday, citing concerns over rising competition in the Buy Now, Pay Later (BNPL) space, as well as the company's path to profitability and slowing e-commerce sales. Affirm stock has fallen 4.6% to $23.26 on Wednesday.
Key Points. Affirm is a fast-growing company in the small buy now, pay later industry. It has lots of competitors and doesn't have the cleanest balance sheet. There's lots of potential here, but investors should still exercise caution before investing in Affirm stock.
Shares of Affirm Holdings Inc. surged in after-hours trading Thursday after the buy-now pay-later company delivered a revenue beat and sought to reassure investors about its positioning in a downturn.
Focusing on short-term profitability will be a swerve in strategy for Klarna. The company's net losses snowballed to 2.5 billion Swedish krona ($254 million) in the first quarter, four times higher than the same period last year, as it aggressively expanded in the US.
Affirm's 'remarkable growth trajectory will continue' despite pressure on stock, says analyst - MarketWatch.
Bottom-Line
Hovering near a 52-week low, with decent analyst ratings, strong revenues, robust outlook, the rising popularity of products, and the company's strategic partnerships to expand as factors in consideration for Affirm, investors might consider buying the dip on this stock for potential long-term gains.
Stock Price Forecast
The 19 analysts offering 12-month price forecasts for Affirm Holdings Inc have a median target of 35.00, with a high estimate of 80.00 and a low estimate of 15.00. The median estimate represents a +9.75% increase from the last price of 31.89.
Is Affirm stock undervalued?
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8 B.
Low | Next Value | High |
---|---|---|
17.01 | 27.03 | 37.06 |
Affirm is a fintech startup that provides point-of-sale (POS) loans and buy now pay later financing for consumers via e-commerce retailers. It makes money in two main ways, through the interest it charges consumers and from merchant fees.
Affirm Holdings (AFRM) closed the most recent trading day at $29.75, moving +0.27% from the previous trading session.
Affirm has received a consensus rating of Hold. The company's average rating score is 2.19, and is based on 6 buy ratings, 7 hold ratings, and 3 sell ratings.
Affirm stock is neither a buy nor sell after falling over 60% in 2022. AFRM is not a Buy, as its share price could remain weak going forward considering rising rates and regulatory headwinds.
- Hold. Zacks' proprietary data indicates that Affirm Holdings, Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the AFRM shares relative to the market in the next few months.
Affirm founder and CEO Max Levchin has a few things flowing in his veins. One, an admirable work ethic that sees him pushing his own physical boundaries each day. Think working to near exhaustion (yes, for real, as the stories on Levchin are told).
Avg Vol (3 month) 3 | 16.94M |
---|---|
Shares Outstanding 5 | 226.27M |
Implied Shares Outstanding 6 | N/A |
Float 8 | 196.5M |
% Held by Insiders 1 | 5.78% |
Affirm Holdings, Inc. is a financial technology company. The Company builds platform for digital and mobile-first commerce. Affirm Holdings offers financial services tool that allows consumers to purchase goods and services. Affirm Holdings serves customers worldwide.
Ultimately, our choice is Affirm because it does not charge any fees, even when you pay late. Additionally, customers can choose from multiple payment options at checkout and finance purchases up to $17,500.
Who are Klarna's competitors?
- Sezzle.
- PayPal Credit.
- Affirm.
- Afterpay.
- Zip.
- Splitit.
- ViaBill.
- GoCardless.
Even Europe's most valuable startup has felt the bite of rising inflation and economic uncertainty. On Monday, May 23, Klarna's CEO Sebastian Siemiatkowski announced it will lay off 10% of its global workforce. As many as 700 people will be affected.
Each loan you take out through Affirm is underwritten individually. You're able to take out multiple loans through the provider and being approved for one Affirm loan does not guarantee that you'll be approved for another loan. The maximum value you can take out on one loan is $17,500.
Affirm Holdings cash on hand for 2021 was $1.706B, a 412.85% increase from 2020. Affirm Holdings cash on hand for 2020 was $0.333B, a 7.92% decline from 2019.
Affirm has been a wonderful place to work. It's growing fast, which means there's a lot to do—but this also creates a ton of opportunity for taking on more and continuing to redefine your role as the company expands.
Affirm is not a good idea if you:
Want to use a BNPL plan to build credit. Affirm reports payment history to Experian for some of its loans, but it isn't guaranteed. If building credit is a priority for you, it's best to go with a financing option where payments are always reported, like a personal loan or credit card.
Ultimately, our choice is Affirm because it does not charge any fees, even when you pay late. Additionally, customers can choose from multiple payment options at checkout and finance purchases up to $17,500.
Takeaway: While Affirm claims to be democratizing financing and providing an alternative to predatory lenders, critics, according to LA Times, have argued that their business model encourages overspending and takes advantage of young, debt-laden consumers.
How Affirm makes money. Affirm makes money from two revenue streams-one from customers and one from merchants. They charge customers an interest rate on loans they issue and they charge merchants a processing fee.