Keep an eye on Affirm Holdings (AFRM), we noted on August 2.
At the time, the stock traded around $63 a share.
All after Square announced it was buying its competitor Afterpay in an all-stock transaction worth $29 billion. And all as “buy now, pay later (BNPL)” just begins to gain popularity.
According to Barron’s, “BNPL is gaining popularity given that interest rates are ultralow, reducing costs for consumers. Other fintech apps have entered the market, including Affirm, a pure play on the sector, and PayPal (PYPL). Apple (AAPL) is also developing a BNPL service with Goldman Sachs Group (GS), its credit-card partner.”
Today, shares of AFRM are up to $118.19 a share, and pushing higher.
Not only is AFRM disrupting the credit card industry, it has a deal with Amazon, and both Paypal and Square are making moves into BNPL.
Even better, AFRM just provided solid earnings and raised its guidance, thanks to “The secular shift toward flexible and transparent financial products continues to accelerate. With our superior technology, Affirm is strongly positioned to build a more valuable two-sided network for consumers and merchants,” said CEO Max Levchin, as quoted by The Street.
On top of that, the company’s gross merchandise volumes (GMV) more than doubled year over year to $2.5 billion. Its active customer base rocketed to 7.1 million. Revenues were up 70% to $261.8 million. As for 2022, the company sees GMVs running higher by 70%, with revenues of between $1.16 billion and $1.19 billion.
In short, AFRM and other BNPL stocks may be some of the most exciting stocks to own now.