Stockideas

Affirm Holdings, Inc
(NASDAQ:AFRM)
Affirm Holdings, Inc

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. Its payments network and partnership with an originating bank, enables consumers to pay for a purchase over time with terms ranging from one to forty-eight months. As of September 30, 2020, the company ...
Founded: 2012
IPO date: 2021-01-13
IPO price: $49
Full Time Employees: 2,000
CEO: Max Levchin  
CFO: Michael Linford 
Sector: Technology
Industry: Finance
Next Earnings Date: 2023-02-09
Stock price: $14.625 (+1.5%)
this company is going away
By: tachyon Very lazy guy   💬 23   
   on Nov 16, 2022

pretty sure this company is going out of business soon. they're going to put more loan losses on their balance sheet in this rate hike environment. $afrm


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TECH ‘Buy now, pay later’ stocks tumble after U.S. consumer watchdog launches probe
By: ssmlee04 Community Lead :))   💬 98   
   on Dec 21, 2021

https://www.cnbc.com/2021/12/17/buy-now-pay-later-stocks-tumble-on-us-regulatory-probe.html

The Consumer Financial Protection Bureau is seeking information from Affirm, Afterpay, Klarna, PayPal and Zip on the risks and benefits of their products.

“Buy now, pay later” services let shoppers defer payment for items, typically over a period of monthly installments and with no interest attached.

Giant FUD has cause the stock price to move down 30% in a couple of day. Now with valuation coming down maybe it's not a bad idea to take a look again and see if there's something here.

$AFRM


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Affirm is the winner of BNPL now basically
By: ssmlee04 Community Lead :))   💬 98   
   on Nov 11, 2021

Affirm active merchants go up 3-4x qoq. This is really impressive and it kind of tells you that they’re the winner in BNPL space and could be a true disruptor in BNPL or even other fin-tech space. And with more merchants on Shopify or Amazon using their product it's even easier for them to achieve economy of scale.

BNPL isn’t a new concept. But it does help people buy stuff like Peloton bikes or Macbook Pro more easily. And that is also going to be the case for Amazon and Shopify products. Keep in mind as Amazon and Shopify becomes more dominate in the e-commerce space it's more likely that Affirm would become a household name in the future. It's possible that no one would know what is Klarna or Afterpay in North American in 5 years.

https://i.imgur.com/9LYNq8r.jpg

https://i.stack.imgur.com/lkusz.jpg

As for the earnings call: Although they missed their earnings, the revenue growth and guidance is pretty good. The reason why the active merchants go up this much is because of their Shopify collaboration. Since they're the sole Amazon BNPL partner now we can also expect their guidance or earnings to go up even more in the coming quarters, since those numbers aren't even in revenue guidance yet. I'd say this is a stock to pay attention to for the rest of 2021 and possibly onwards.

long $AFRM


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Affirm to Debut Crypto, Debit Products in Push Toward Super App
By: ssmlee04 Community Lead :))   💬 98   
   on Oct 02, 2021

https://www.bloomberg.com/news/articles/2021-09-28/affirm-to-debut-crypto-debit-products-in-push-toward-super-app

They're on track to become credit card v2 and merchants around the world would be forced to integrate with them. And now they're push forward to becoming a super app. this would be something.

$sq might have to watch out. there's a chance the winner of BNPL & superapp is already here.

$afrm


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BNPL is going to disrupt credit card businesses hard
By: ssmlee04 Community Lead :))   💬 98   
   on Sep 19, 2021

I'd be cautious if I am investing in those traditional credit card companies. Affirm (and Peloton) has proved to us that people are willing to pay a bit more for payment installments and then they do not need to worry too much about late payment fees and all kinds of hidden fees in those fine prints. Think about all those times where you call credit card companies and ask them about something that shows up on the statements? Those are awful experiences that I do not think deserve to exist in 2021.

For those BNPL services, they're mostly modern tech companies with machine learning capabilities. They can say no to you in the first place so that you don't need to be in those kinds of awkward situations where you need to call them and then argue with them. And if you can have almost the same shopping experience on, say Amazon or Peloton, with two payment methods that one is less of a problem to you and it's likely you'd choose one over another. Besides, with BNPL you can leverage more efficiently to achieve your financial goals.

$axp is probably ok because axp is not really a card company but more like a service company in my opinion. Visa and MasterCard probably not so much.

short / neutral $V $MA $AXP. long $AFRM $SQ


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Affirm Q2 earnings call
By: ssmlee04 Community Lead :))   💬 98   
   on Sep 10, 2021

Excellent earnings call.

  • Revenue: $261.8 million vs. $225 million expected, according to a Refinitiv survey of analysts.
  • Accelerates Q4 Gross Merchandise Volume Growth to 106% and Total Revenue Growth to 71% Year Over Year
  • Loss per share: 48 cents per share, which is not comparable to estimates
  • Expands Network by Nearly Doubling Active Consumers and Growing Active Merchants by Over 400% Year Over Year
  • Active consumers grew 97% to 7.1 million

$AFRM it is up 20% in after-hour trading. The prospect of this company is good. Also with Amazon Affirm collaboration in the future we can imagine this company is going to have a good time.

With 1% of Amazon users using this their GMV would easily go up 50%. If 10% of Amazon users use it their GME would go up 500%... etc. Also bear in mind Amazon is a company that's growing 40% a year, which Amazon being your partner only sky is the limit.

source: https://investors.affirm.com/news-releases/news-release-details/affirm-reports-fourth-quarter-and-fiscal-year-2021-results


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Affirm stock rallies after report of plans to work with Apple in Canada
By: ssmlee04 Community Lead :))   💬 98   
   on Aug 04, 2021

https://www.marketwatch.com/story/affirm-stock-rallies-after-report-of-plans-to-work-with-apple-in-canada-11628034532

Report indicates Apple will partner with Affirm on an installment option for some Canadian device purchases

$aapl $afrm


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Apple developing new ‘Apple Pay Later’ service to let customers buy any Apple Pay purchases in monthly installments
By: ssmlee04 Community Lead :))   💬 98   
   on Jul 13, 2021

https://9to5mac.com/2021/07/13/apple-developing-new-apple-pay-later-service-to-let-customers-buy-any-apple-pay-purchases-in-monthly-installments/

Congrats $aapl, when paying something is at your fingertip I can imagine them (and possibly Google later) having lots of opportunities to tap into this buy now pay later consumer credit market. rip $afrm but there's probably not much you can do anyways.


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Affirm S1 and Q1 earnings call
By: ssmlee04 Community Lead :))   💬 98   
   on Jun 18, 2021

tl;dr: It is a great company. Look into it. It is a buy.

In their S1 they say this company's mission is to build honest financial products that improve lives. The see a lot of problems coming from credit cards like the hidden fees, fine prints that's hurting consumers greatly. And Affirm is borne in 2012 to help tackle this issue and make sure companies doesn't benefit from the mistakes or the misfortunes of their clients.

https://i.imgur.com/oH65gah.jpg

https://i.imgur.com/Lkxac0Q.jpg

https://i.imgur.com/DHXWE6t.jpg

S1: https://i.imgur.com/a9zZxqt.png

Q1 2021: https://i.imgur.com/Mqtp8z2.jpg

long $AFRM


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