Bullish option flow was detected in AFRM stock on December 21, 2021, after the company announced a partnership with Newegg.
Bullish Option Flow AFRM Stock
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Newegg Partners with Affirm to Give Customers Greater Payment Flexibility on Newegg.com
On December 21, 2021, Newegg Commerce, Inc. (NASDAQ: NEGG), a leading tech-focused e-retailer in North America, announced a partnership with Affirm (NASDAQ: AFRM), a payment network that empowers consumers and helps merchants drive growth, to bring flexible pay-over-time options to customers shopping Newegg.com. Paying with Affirm allows customers the flexibility to split purchases into simple payments over time, with no hidden or late fees.
“Consumers are demanding flexible payment options this holiday season and beyond,” said Silvija Martincevic, Chief Commercial Officer of Affirm. “According to Affirm’s Consumer Spend Report, more than half of Americans are interested in using a pay-over-time solution for their holiday shopping this year. By teaming up with Newegg, we are delivering flexibility, control and transparency at checkout to give consumers the confidence to purchase their favorite electronics.”
Customers processing orders $100 and above now have the option to pay over time with Affirm. Selecting this payment method enables them to split purchases into monthly payments. Affirm charges simple interest that never compounds. Customers never pay a penny more than the amount they agree to up front, with no hidden or late fees even if they miss a payment, giving customers the simplest and most transparent way to finance their purchases on Newegg.com.
“We’re committed to giving our customers payment flexibility, whether that means offering the latest cryptocurrencies as a payment option, or giving them the ability to finance larger purchases over time,” said Anthony Chow, CEO of Newegg. “Our collaboration with Affirm delivers on that commitment, giving our customers what we believe is one of the best pay-over-time options currently available.”
Affirm price target lowered to $185 from $210 at Truist
On December 15, 2021, Truist analyst Andrew Jeffrey lowered the firm’s price target on Affirm (AFRM) to $185 from $210 and reiterates a Buy rating on the shares. The analyst says he does not know when digital native valuation compression will end and that Affirm is one of the most expensive names he covers. However, the company has “among the longest structural” gross merchandise volume and organic revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... growth runways in financial technology, Jeffrey tells investors in a research note. He sees material upside to consensus estimates for Affirm as Shopify (SHOP) and Amazon (AMZN) volume ramps.
CFPB to seek buy now, pay later information from Affirm, others, Bloomberg says
On December 16, 2021, the Consumer Financial Protection Bureau is expected to send letters to Affirm (AFRM), Afterpay and Klarna and other companies that dominate the buy now, pay later market for information about consumer protection concerns that have arisen about the product, Bloomberg Law reports, citing multiple sources with knowledge of the letters. The letters are expected to seek information similar to the ones the CFPB sent to Apple (AAPL), Amazon (AMZN), and Google (GOOGL) in October, according to the report. Source: https://news.bloomberglaw.com/banking-law/buy-now-pay-later-in-consumer-finance-watchdogs-crosshairs
Affirm price target lowered to $140 from $180 at Mizuho
On December 14, 2021, Mizuho analyst Dan Dolev lowered the firm’s price target on Affirm to $140 from $180 and keeps a Buy rating on the shares. While buy now pay later is a “strong growth engine” and will likely increasingly expand its presence in the U.S. the coming years, research uncovers “several potential risks that we believe are not fully understood,” Dolev tells investors in a research note. Delinquencies and charge-offs are rising across many BNPL operators and U.S. government data across lower income brackets “shows many users have limited financial flexibility,” Dolev tells investors in a research note. Amid lower market multiples and potential for “incremental headwinds,” the analyst trimmed upsides and lowered price targets.
📈 AFRM Stock Technical Analysis
The short term trend is negative, the long term trend is neutral. AFRM is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so AFRM is lagging the market slightly. AFRM is one of the lesser performing stocks in the IT Services industry. 100% of 149 stocks in the same industry do better.
There is a support zone ranging from 97.37 to 98.77. This zone is formed by a combination of multiple trend lines in multiple time frames. There us also a support at 71.04 from a trend line in the daily time frame. There is a resistance at 112.10 from a trend line in the daily time frame.
AFRM has a poor technical rating and the quality of the setup is also not perfect at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when AFRM stock is a good entry.