AFRM stock rocketed 13% higher on November 11, 2021, after the “buy now, pay later” company locked up a partnership with Amazon.
Affirm jumps after locking up spot as Amazon’s BNPL partner in U.S.
Shares of AFRM stock are on the rise after the “buy now, pay later” company reported better-than-expected 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... for the first quarter of fiscal year 2022 and said it was expanding its partnership with Amazon (AMZN).
Affirm said it will be generally available to support all eligible purchases of $50 or more on Amazon.com and the Amazon shopping app in the United States. Consumers will have the option to split the total cost of eligible purchases into monthly payments at checkout with no late or hidden fees, ever. As part of an amended agreement, Affirm will serve as Amazon’s only third party, non-credit card, buy now, pay later option in the U.S. Until January 2023, Amazon will be subject to certain restrictions on providing other installment products in the U.S. by other BNPL providers. Affirm will also be integrated into Amazon Pay’s digital wallet in the U.S. In conjunction with the amended agreement, Amazon will receive multiple tranches of warrants to purchase shares of Affirm’s class A Common Stock, some of which are subject to satisfaction of certain performance obligations and vesting conditions.
Affirm AFRM stock price target raised to $191 from $183 at BofA
BofA analyst Jason Kupferberg raised the firm’s price target on Affirm to $191 from $183 and keeps a Buy rating on the shares as he increased his FY22 and FY23 revenue estimates and GMV forecasts following the company’s Q1 results and guidance.
Affirm price target raised to $175 from $130 at RBC Capital
RBC Capital analyst Daniel Perlin raised the firm’s price target on Affirm (AFRM) to $175 from $130 and keeps an Outperform rating on the shares. The analyst cites the company’s “strong” Q3 results and outlook, which highlight growth beyond Peloton (PTON) as some of its other large clients ramp up activity. Perlin is also positive on Affirm’s new expanded relationship with Amazon (AMZN), allowing the company to be “the only buy-now-pay-later” partner in the U.S. until January 2023.
Affirm price target raised to $150 from $105 at Credit Suisse
Credit Suisse analyst Timothy Chiodo raised the firm’s price target on Affirm (AFRM) to $150 from $105 and keeps a Neutral rating on the shares. The analyst notes Affirm beat across the board on topline metrics to start the fiscal year, and raised full year 2022 guidance for these metrics by 4%-5% each at the high-end. Further, additional information around the Amazon (AMZN) relationship was made available, with Amazon now contracted through Jan 2025 and Affirm assuring that Amazon will not add other non-card offerings from certain competitors through January 2023.
Affirm’s expanded Amazon deal not reflected in outlook, says Barclays
Affirm (AFRM) reported a “strong” fiscal Q1 beat and raise, but the more important headline is the announcement of an exclusive partnership with Amazon.com (AMZN), where Affirm will now be the sole buy now pay later provider on U.S. purchases through 2023, Barclays analyst Ramsey El-Assal tells investors in a research note. The analyst says the deal is not fully reflected in Affirm’s outlook and “could represent nice medium-term upside.” He keeps an Overweight rating on the shares with a $175 price target.
Affirm Reports Fiscal Year 2022 First Quarter Results
On November 11, 2021, Affirm Holdings, Inc. (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, today reported financial results for its fiscal 2022 first quarter ended September 30, 2021.
- Expands Network by Increasing Active Merchants from 6,500 to 102,000 and Active Consumers by 124% to 8.7 million Year Over Year
- Grows Year-Over-Year GMV by 84%, or 138% Excluding Largest Merchant
- Expands Amazon Relationship to All Eligible U.S. Purchases; Affirm to be Embedded as Payment Option in Amazon Pay’s Digital Wallet in the U.S.
- Exceeds First Quarter Financial Outlook and Raises Outlook for Gross Merchandise Volume (GMV), Revenue, and Revenue Less Transaction Costs for Fiscal Year 2022
Affirm reported Q3 revenue of $269.39M versus the consensus estimate of $248.23M. The company reported Q3 EPS of ($1.13) but that may not be comparable to the consensus estimate of (30c).
“Our strong quarter once again demonstrates the continued momentum across Affirm as more people embrace the transparency, flexibility and value our solutions provide,” said Max Levchin, Founder and CEO of Affirm. “Our unrivaled technology, industry-leading talent and the investments we are making are delivering results. Over the last year, we expanded our network by increasing the number of active merchants on our platform to over 100,000 and more than doubling the number of active consumers. These deep connections and our partnerships with merchants drove growth in GMV, frequency of engagement, and revenue.”
Levchin continued, “We are pleased with our performance and proud of the contributions of our nearly 2,000-strong Affirm team. At the same time, there is a lot more for us to build to achieve our objectives, and we are even more excited about the opportunities ahead. We remain focused on continuing to delight and grow both sides of our network by giving people even more reasons to choose Affirm with more products and in more markets.”
VIDEO Affirm (AFRM) AMAZON + AFFIRM = WOW!! Should You Buy Affirm Stock?
The Investor Channel gave his opinion on AFRM stock and the expanded Amazon deal.
AFRM Stock Technical Analysis
The rising large players volume looks awesome. The short term is neutral, but the long term trend is still positive. Not much to worry about for now. AFRM has an average technical rating and the quality of the presented setup is also not ideal 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.