Affirm Holdings (AFRM) has become explosive.
The first time we spoke about the AFRM stock, it traded at $63 a share on August 2. 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.
Today, the AFRM stock is up to $156.32 – and could be headed to $200 a share.
Bank of America is bullish on the stock., raising the firm’s price target from $119 to $160.
“AFRM is the clear bright spot,” said the analysts, as quoted by Yahoo Finance. While “all the other BNPL vendors saw deceleration in September app downloads and [monthly active users] growth compared to August and 1H, AFRM was the only provider that saw growth accelerate in both metrics,” they added.
“More people in the U.S. are starting to use BNPL, according to BofA’s survey of 1,124 BNPL users, which found that 47% of respondents had used BNPL eight or more times in the last 12 months, while 54% of respondents plan to use it eight or more times in the next 12 months.”
Again, with the BNPL boom showing no clear signs of slowing, AFRM could run to $200.
Growth is Quickly Gaining Momentum
In addition to partnerships with Amazon.com, Target, and Shopify, earnings growth is solid.
According to a company press release, Affirm Holdings:
- Exceeded Fourth Quarter Financial Outlook
- Accelerated Q4 Gross Merchandise Volume Growth to 106% and Total Revenue Growth to 71% Year Over Year
- Expanded Network by Nearly Doubling Active Consumers and Growing Active Merchants by Over 400% Year Over Year
- It also expects Fiscal Year 2022 GMV Growth of At Least 50%, or 70% Excluding Peloton, Prior to Any Benefit from the Recently Announced Amazon Partnership
From here, we just don’t see growth slowing any time soon.
Congratulations to those that bought AFRM around $63 on our August 2, 2021 note.