The most likely reason for the drop is that Affirm's stock is priced for phenomenal growth. Since its IPO just last month, Affirm's stock has risen by more than 180%, so it's fair to say that investors had extremely high expectations to justify the lofty valuation. Even so, Affirm's results look strong in virtually every way.
Is affirm a good stock?
Affirm stock isn't a good investment until the stock price falls from its overvalued level. Affirm Holdings (NASDAQ: AFRM) went public on Jan. 15 and raised over $1.3 billion before expenses. One ...
Why is affirm plunging on Monday?
The plunge helps raise funds for Special Olympics Rhode Island. WPRI 12 and FOX Providence are proud sponsors of this event. BARRINGTON, R.I. (WPRI) -- After a threat was found in the girls' bathroom at Barrington High School Monday, students are calling ...
Is now the time to buy affirm?
Buy now, pay later (BNPL) is a form of credit that allows customers to pay for big-ticket items, like a Peloton, in installments. Companies in the sector include Afterpay, which was recently acquired by Square, Affirm ... the cost of time to set up ...
Why is everyone talking about affirm Holdings stock?
“Millions of people see Affirm as a smart way to pay because of our honest, transparent, and customizable payment terms. Merchants recognize our ability to help them drive growth and deliver the experience consumers are demanding at checkout.
What just happened to Affirm stock?
Affirm shares ended 2021 at 100.56, up a measly 3% from the closing price of its Nasdaq debut on Jan. 13 that year. In 2022, the stock has collapsed as much as 86% year to date.
Is Affirm a good buy now?
That's a fat short-term gain, but there are people who bought in October near $146 sitting on big losses. It's still not cheap. At its current price Affirm is worth $13.2 billion on expected 2022 revenue of $1.32 billion. But that would be up 29% from fiscal 2021's $870 million, and double 2020's $509 million.
Is Affirm stock overpriced?
Summary. Affirm was trading at about the same level as it is now when we warned investors against owning the stock on Jan. 31, 2022. Since then, the company's latest earnings report disappointment confirms our thesis that the stock is overvalued by 80%-plus.
Is Affirm stock a buy sell or hold?
14 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Affirm in the last year. There are currently 2 sell ratings, 6 hold ratings and 6 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "hold" Affirm stock.
Key Points
A loss of $0.55 earnings per share missed estimates, while revenue of $361 million beat estimates.
NASDAQ: AFRM
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What happened
Shares of the popular buy now, pay later company Affirm ( AFRM -0.90% ) had dropped roughly 23% just before the market closed today after the company released its latest batch of earnings results on Twitter sooner than expected.
So what
Since the early drop, Affirm has released the full earnings results for the second fiscal quarter of 2022 on its investor relations website. For the three months ending on Dec. 31, Affirm reported a loss of nearly $160 million, or a loss of $0.55 earnings per share (EPS). Total revenue came in at $361 million for the quarter.
Now what
In the current earnings season, the market has been pretty hostile toward tech and growth companies that don't beat estimates or provide solid guidance for the year ahead.
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Buy now, pay later stocks continue to face scrutiny from the market
Bram Berkowitz mainly writes in the financials bureau covering the banking sector. Prior to The Motley Fool, he wrote about and covered community and regional banks in New England for The Warren Group.
What happened
Shares of the buy now, pay later (BNPL) lender Affirm ( NASDAQ:AFRM) fell as much as 16% today before rebounding some in the last hour of trading when it only traded down about 11%. There does not seem to be an obvious reason behind the move.
So what
Despite its lack of profitability, investors just a few months ago had driven Affirm's stock up to a more-than $40 billion market cap. In August of last year, Affirm partnered with Amazon to deliver its BNPL option at checkout.
Now what
There has been growing concerns in the BNPL space about credit quality, with more than one-third of consumers who have tried BNPL missing at least one payment as of September. Furthermore, credit bureaus are starting to include these plans into credit scores.
What is MQ in IPO?
Marqeta (MQ), which is a payments processing operator, pulled off its IPO last week. On the first day of trading, the shares rose by 13% to $30.50, putting the market capitalization over $16 billion. The performance may seem unimpressive, but it's actually strong, considering that the company initially set a range for the offering at $20 to $24. (See Marqeta Stock Stats and Charts on TipRanks) The underwriters on the offering included Goldman Sachs (GS), J.P. Morgan (JPM), Citi (C), Barclays (BC
What is upstart holdings?
Upstart Holdings (NASDAQ: UPST) uses artificial intelligence to make lending decisions by utilizing many data points that a FICO score doesn't account for, giving lenders using Upstart's technology a more complete picture of a potential borrower's ability to pay. Motley Fool • 4 days ago.
Is Apple Pay later a BNPL?
Shares of Affirm Holding (NASDAQ: AFRM) tumbled today on news that Apple (NASDAQ: AAPL) was launching a rival "buy now, pay later" (BNPL) service. According to Bloomberg, Apple will be partnering with Goldman Sachs on the project, currently known as Apple Pay Later.
About Affirm
Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States and Canada. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app.
Affirm (NASDAQ:AFRM) Frequently Asked Questions
14 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Affirm in the last year. There are currently 1 sell rating, 5 hold ratings and 8 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "buy" Affirm stock. View analyst ratings for Affirm or view top-rated stocks.
Key Points
Affirm released new upgrades to its app and a new Google Chrome extension.
NASDAQ: AFRM
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What happened
Shares of the buy now, pay later company Affirm Holdings ( AFRM -3.87% ) were roughly 12.5% higher as of 2:32 p.m. ET today, as tech stocks rallied and the company announced upgrades to its platform.
So what
After a difficult and volatile week for stocks, the Nasdaq Composite had risen 2.35% on Wednesday as of this writing.
Now what
The new products all sound like good additions that will make the product more valuable for the customer.
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