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Affirm Holdings Selloff Is ‘Baffling’: Analysts Dive Into Financial Results


Shares of Affirm Holdings Inc (NASDAQ:AFRM) were climbing in early trading on Thursday, after dropping more than 9% on Wednesday, after the company reported its fiscal third-quarter results.

The results came amid an exciting earnings season. Here are some key analyst takeaways.

JPMorgan On Affirm Holdings

Analyst Reginald Smith upgraded the rating from Neutral to Overweight, while raising the price target from $41 to $43.

The steep decline in Affirm’s shares on Wednesday, despite the company posting another headline and operating margin beat and announcing a better-than-feared GMV outlook for the fiscal fourth quarter, “was baffling,” Smith said in a note. Affirm Card active cardholders surpassed the one million mark, rising from 700,000 in the previous quarter, he added.

Pay Now is increasing as a percentage of Card GMV, “which may be a sign of progress towards becoming a top-of-wallet card,” the analyst wrote. “In light of strong recent performance, Affirm is beginning to open their risk aperture, which includes offering better credits lower APRs to drive incremental GMV growth, as well as expanding their credit box at the margin,” he added.

Goldman Sachs …

Full story available on Benzinga.com

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