Affirm Holdings Inc (NASDAQ:AFRM) Targets Growth in the BNPL Sector
- Price Target Set: Rayna Kumar from Oppenheimer sets a price target of $80 for AFRM, indicating a potential upside of 16.11%.
- Strategic Focus: AFRM emphasizes vertical integration to enhance profitability amidst regulatory challenges and competition.
- Financial Performance: In Q3 of fiscal year 2025, AFRM's revenues surged by 36%, and its adjusted operating margin improved by 860 basis points.
Affirm Holdings Inc (NASDAQ:AFRM) is a key player in the Buy Now, Pay Later (BNPL) sector. The company is known for its innovative approach to consumer financing, allowing customers to make purchases and pay over time. AFRM competes with other BNPL companies like Afterpay and Klarna. On July 21, 2025, Rayna Kumar from Oppenheimer set a price target of $80 for AFRM, suggesting a potential upside of 16.11% from its current price of $68.90.
AFRM is focusing on vertical integration to boost profitability in a competitive market. By handling underwriting, loan origination, and collections internally, the company aims to cut costs and improve margins. This strategy is crucial as AFRM faces challenges from regulators, high interest rates, and competition. The company uses proprietary algorithms and funding to enhance loan performance and net interest margins.
In the third quarter of fiscal year 2025, AFRM's revenues increased by 36%, and its adjusted operating margin improved by 860 basis points compared to the previous year. This growth highlights the effectiveness of AFRM's strategic initiatives. The company is taking control of more aspects of the BNPL value chain to gain a significant market advantage.
Currently, AFRM's stock price is $68.90, reflecting a decrease of 0.82% or $0.57. During the trading day, the stock fluctuated between $66.94 and $70.40. Over the past year, AFRM's stock reached a high of $82.53 and a low of $22.25. The company has a market capitalization of approximately $22.23 billion, with a trading volume of 4.21 million shares today.
| Symbol | Price | %chg |
|---|---|---|
| 4338.HK | 1600 | 0 |
| 377300.KS | 61800 | 1.62 |
| CYBR.JK | 935 | -2.14 |
| MSFT.NE | 37.72 | 0 |
Affirm Holdings, Inc. Faces Setback and Investigation
- Affirm Holdings, Inc. (NASDAQ:AFRM) stock price dropped by $6.38 per share, or 12.74%, following Klarna's announcement as Walmart's new BNPL provider.
- Pomerantz LLP investigates potential securities fraud or unlawful business practices by Affirm and its executives.
- Affirm's stock continues to decline, with a current price of $35.02, amidst ongoing volatility and market scrutiny.
Affirm Holdings, Inc. (NASDAQ:AFRM) is a leading financial technology company that offers Buy Now, Pay Later (BNPL) services, enabling consumers to make purchases and pay for them over time. The company recently encountered a significant challenge when Klarna, a competitor in the BNPL space, announced it would replace Affirm as Walmart's exclusive BNPL provider. This news led to a sharp decline in Affirm's stock price.
Following Klarna's announcement, Affirm's stock price dropped by $6.38 per share, or 12.74%, closing at $43.70 on March 18, 2025. This decline prompted Pomerantz LLP to investigate potential securities fraud or unlawful business practices by Affirm and its executives. Pomerantz LLP, known for its expertise in securities class actions, has a history of securing substantial damages for investors.
In the wake of these events, Rabois Keith, a director at Affirm, sold 4,600 shares of Class A Common Stock at $44.77 per share on April 1, 2025. Despite this sale, Keith still holds 56,920 shares in the company. This transaction was reported on Form 4, filed with the SEC on April 3, 2025, and is available on the SEC's website.
Currently, Affirm's stock is priced at $35.02, reflecting a further decrease of approximately 10% or $3.89. During the trading day, the stock fluctuated between a low of $30.91 and a high of $36.11. Over the past year, Affirm's stock has experienced significant volatility, with a high of $82.53 and a low of $22.25.
Affirm's market capitalization stands at approximately $11.2 billion, with a trading volume on the NASDAQ exchange of 12,968,714 shares. As the investigation by Pomerantz LLP unfolds, investors are keenly watching for any developments that could impact Affirm's stock performance and overall market position.
Affirm Holdings, Inc. Faces Setback and Investigation
- Affirm Holdings, Inc. (NASDAQ:AFRM) stock price dropped by $6.38 per share, or 12.74%, following Klarna's announcement as Walmart's new BNPL provider.
- Pomerantz LLP investigates potential securities fraud or unlawful business practices by Affirm and its executives.
- Affirm's stock continues to decline, with a current price of $35.02, amidst ongoing volatility and market scrutiny.
Affirm Holdings, Inc. (NASDAQ:AFRM) is a leading financial technology company that offers Buy Now, Pay Later (BNPL) services, enabling consumers to make purchases and pay for them over time. The company recently encountered a significant challenge when Klarna, a competitor in the BNPL space, announced it would replace Affirm as Walmart's exclusive BNPL provider. This news led to a sharp decline in Affirm's stock price.
Following Klarna's announcement, Affirm's stock price dropped by $6.38 per share, or 12.74%, closing at $43.70 on March 18, 2025. This decline prompted Pomerantz LLP to investigate potential securities fraud or unlawful business practices by Affirm and its executives. Pomerantz LLP, known for its expertise in securities class actions, has a history of securing substantial damages for investors.
In the wake of these events, Rabois Keith, a director at Affirm, sold 4,600 shares of Class A Common Stock at $44.77 per share on April 1, 2025. Despite this sale, Keith still holds 56,920 shares in the company. This transaction was reported on Form 4, filed with the SEC on April 3, 2025, and is available on the SEC's website.
Currently, Affirm's stock is priced at $35.02, reflecting a further decrease of approximately 10% or $3.89. During the trading day, the stock fluctuated between a low of $30.91 and a high of $36.11. Over the past year, Affirm's stock has experienced significant volatility, with a high of $82.53 and a low of $22.25.
Affirm's market capitalization stands at approximately $11.2 billion, with a trading volume on the NASDAQ exchange of 12,968,714 shares. As the investigation by Pomerantz LLP unfolds, investors are keenly watching for any developments that could impact Affirm's stock performance and overall market position.
Affirm Holdings, Inc. (NASDAQ:AFRM) Struggles with Capital Efficiency Compared to Peers
Affirm Holdings, Inc. (NASDAQ:AFRM) is a leading financial technology company that offers innovative buy now, pay later (BNPL) services. It enables consumers to make purchases and spread the cost over time without incurring hidden fees. Affirm is in direct competition with other fintech entities such as Upstart Holdings, Inc. (UPST), SoFi Technologies, Inc. (SOFI), and traditional financial institutions.
Affirm's Return on Invested Capital (ROIC) is -3.09%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 16.38%. This negative ROIC indicates that Affirm is not generating sufficient returns to cover its cost of capital, posing a potential concern for investors. The ROIC to WACC ratio of -0.19 further underscores this inefficiency.
In comparison, Upstart Holdings has an even lower ROIC of -17.03% against a WACC of 12.10%, resulting in a ROIC to WACC ratio of -1.41. This suggests that Upstart is also facing challenges in generating returns that surpass its cost of capital. Similarly, SoFi Technologies has a ROIC of -0.17% and a WACC of 16.19%, with a ROIC to WACC ratio of -0.01, indicating slight underperformance.
Roblox Corporation and Snowflake Inc. also exhibit negative ROICs of -30.41% and -25.32%, respectively, with WACCs of 10.74% and 8.82%. Their ROIC to WACC ratios of -2.83 and -2.87 reflect significant inefficiencies in capital utilization. However, Robinhood Markets, Inc. stands out with a positive ROIC of 9.01% and a WACC of 12.43%, resulting in a ROIC to WACC ratio of 0.72
Affirm Holdings, Inc. (NASDAQ:AFRM) Struggles with Capital Efficiency Compared to Peers
Affirm Holdings, Inc. (NASDAQ:AFRM) is a leading financial technology company that offers innovative buy now, pay later (BNPL) services. It enables consumers to make purchases and spread the cost over time without incurring hidden fees. Affirm is in direct competition with other fintech entities such as Upstart Holdings, Inc. (UPST), SoFi Technologies, Inc. (SOFI), and traditional financial institutions.
Affirm's Return on Invested Capital (ROIC) is -3.09%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 16.38%. This negative ROIC indicates that Affirm is not generating sufficient returns to cover its cost of capital, posing a potential concern for investors. The ROIC to WACC ratio of -0.19 further underscores this inefficiency.
In comparison, Upstart Holdings has an even lower ROIC of -17.03% against a WACC of 12.10%, resulting in a ROIC to WACC ratio of -1.41. This suggests that Upstart is also facing challenges in generating returns that surpass its cost of capital. Similarly, SoFi Technologies has a ROIC of -0.17% and a WACC of 16.19%, with a ROIC to WACC ratio of -0.01, indicating slight underperformance.
Roblox Corporation and Snowflake Inc. also exhibit negative ROICs of -30.41% and -25.32%, respectively, with WACCs of 10.74% and 8.82%. Their ROIC to WACC ratios of -2.83 and -2.87 reflect significant inefficiencies in capital utilization. However, Robinhood Markets, Inc. stands out with a positive ROIC of 9.01% and a WACC of 12.43%, resulting in a ROIC to WACC ratio of 0.72
Affirm Holdings, Inc. (NASDAQ:AFRM) Financial Analysis
- Affirm Holdings, Inc. (NASDAQ:AFRM) has a Return on Invested Capital (ROIC) of -3.09%, indicating it is not generating sufficient returns to cover its cost of capital.
- Comparatively, Upstart Holdings, Inc. (NASDAQ:UPST) and SoFi Technologies, Inc. (NASDAQ:SOFI) also struggle with ROIC below their WACC, similar to Affirm.
- In contrast, Robinhood Markets, Inc. (NASDAQ:HOOD) showcases a positive ROIC of 9.01%, outperforming its peers by generating returns above its cost of capital.
Affirm Holdings, Inc. (NASDAQ:AFRM), a leading financial technology company, offers innovative buy now, pay later (BNPL) services. This allows consumers to make purchases and pay for them over time without incurring hidden fees. Affirm competes with other fintech companies such as Upstart Holdings, Inc. (NASDAQ:UPST), SoFi Technologies, Inc. (NASDAQ:SOFI), and traditional financial institutions.
In analyzing Affirm's financial performance, its Return on Invested Capital (ROIC) is -3.09%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 17.66%. This negative ROIC indicates that Affirm is not generating enough returns to cover its cost of capital, which is a concern for investors.
Comparing Affirm to its peers, Upstart Holdings has a ROIC of -19.91% and a WACC of 12.94%, resulting in a ROIC to WACC ratio of -1.538. This suggests that Upstart is also struggling to generate returns that meet its cost of capital, similar to Affirm.
SoFi Technologies, with a ROIC of -0.17% and a WACC of 15.96%, has a ROIC to WACC ratio of -0.011. Although SoFi's ROIC is closer to its WACC compared to Affirm, it still falls short of covering its cost of capital.
In contrast, Robinhood Markets, Inc. (NASDAQ:HOOD) stands out with a positive ROIC of 9.01% against a WACC of 12.87%, resulting in a ROIC to WACC ratio of 0.700. This indicates that Robinhood is effectively generating returns above its cost of capital, unlike Affirm and most of its peers.
Affirm Holdings, Inc. (NASDAQ:AFRM) Financial Analysis
- Affirm Holdings, Inc. (NASDAQ:AFRM) has a Return on Invested Capital (ROIC) of -3.09%, indicating it is not generating sufficient returns to cover its cost of capital.
- Comparatively, Upstart Holdings, Inc. (NASDAQ:UPST) and SoFi Technologies, Inc. (NASDAQ:SOFI) also struggle with ROIC below their WACC, similar to Affirm.
- In contrast, Robinhood Markets, Inc. (NASDAQ:HOOD) showcases a positive ROIC of 9.01%, outperforming its peers by generating returns above its cost of capital.
Affirm Holdings, Inc. (NASDAQ:AFRM), a leading financial technology company, offers innovative buy now, pay later (BNPL) services. This allows consumers to make purchases and pay for them over time without incurring hidden fees. Affirm competes with other fintech companies such as Upstart Holdings, Inc. (NASDAQ:UPST), SoFi Technologies, Inc. (NASDAQ:SOFI), and traditional financial institutions.
In analyzing Affirm's financial performance, its Return on Invested Capital (ROIC) is -3.09%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 17.66%. This negative ROIC indicates that Affirm is not generating enough returns to cover its cost of capital, which is a concern for investors.
Comparing Affirm to its peers, Upstart Holdings has a ROIC of -19.91% and a WACC of 12.94%, resulting in a ROIC to WACC ratio of -1.538. This suggests that Upstart is also struggling to generate returns that meet its cost of capital, similar to Affirm.
SoFi Technologies, with a ROIC of -0.17% and a WACC of 15.96%, has a ROIC to WACC ratio of -0.011. Although SoFi's ROIC is closer to its WACC compared to Affirm, it still falls short of covering its cost of capital.
In contrast, Robinhood Markets, Inc. (NASDAQ:HOOD) stands out with a positive ROIC of 9.01% against a WACC of 12.87%, resulting in a ROIC to WACC ratio of 0.700. This indicates that Robinhood is effectively generating returns above its cost of capital, unlike Affirm and most of its peers.
