Affirm Holdings, a payment service, made money on the day Amazon sold things
The provider of the payment platform for purchasing goods in installments, Affirm Holdings Inc. (AFRM), received a positive recommendation from the financial firm Stephens was the driver of the growth of AFRM quotes by 15.36% to $19.83 at the auction on July 8. According to Stephens analyst Vincent Cantic, Affirm Holdings will receive a significant positive boost from the Prime Day sales on Amazon.com Inc.
Sales will be on July 12-13, and Affirm will receive a significant portion of the number of goods sold in installments. In general, sales on Prime Day this year are estimated at $8—$11 billion, so even a share of 20-30% can significantly increase the gross revenue (GMV indicator) of Affirm, which will reflect in the report for the first quarter of the fiscal year. This report will be on September 30. However, the Stephens analyst noted that investors pay more attention to profit than the GMV indicator, so he kept the recommendation “below the market” and set a target of $ 18.
Affirm Holdings has an extensive business providing “buy now, pay later” (BNPL) services. Such services are popular during sales since many consumers do not collect money but buy goods in installments. Affirm Holdings easily attracts consumers with a softer credit check, which is especially important during a limited period of sales when there is no time for a comprehensive review. Tom Noyes, an analyst at Starpoint LLP and Citibank, believes that BNPL services can become a turning point in the consumer lending industry. However, it should bear in mind that significant players such as Apple and Paypal are entering this market. They pose a severe competitive threat to Affirm.
