When is Wall Street going to understand that buy now, pay later isn’t just a business model—it’s a damn national pastime? ICYMI, Affirm dropped a massive surprise profit, smashed revenue expectations, and sent its stock into full-on moon mode, ripping 22.8% last week (up an additional 4.69% today). Apparently, Americans cannot and will not stop financing crap we can’t afford, and Affirm is here to facilitate that addiction in every way they can (Case in point: I just paid off an Affirm loan over the weekend LOL). 

(Source: Giphy) 

For more context, Wall Street was expecting a 15-cent loss per share from Affirm. Instead, they got a 23-cent profit that translates into Affirm taking analysts behind the woodshed. Revenue came in at $866 million, up 47% year-over-year and obliterating the $807 million estimate. And if you thought people were only financing Pelotons and gaming chairs, think again—gross merchandise volume hit $10.1 billion, surpassing expectations and breaking the $10B threshold for the first time. 

Of course, Affirm credits this generational bag-fumble to a record-breaking holiday shopping season, with third-party marketplaces up 44% and travel spending up 42% during Black Friday and Cyber Monday. Which is why CEO Max Levchin wasted no time boasting on the win, declaring that "Affirm is in the strongest shape it’s ever been. Challenges met, competitors bested." Translation: Klarna is screwed.

(Source: CNBC) 

What’s more is that Levchin is right on the money with this. Affirm has deep partnerships with Apple, Amazon, and Shopify, meaning every time you panic-buy something at checkout, there’s a good chance Affirm is right there, whispering ‘Don’t worry, you can pay us later.’ Which means they’re goals of hitting GAAP profitability by the end of their fiscal fourth quarter are still very much possible ((a rare feat in the BNPL world, where profits are usually just a rumor). For Q3, they expect revenue of $755M to $785M, slightly below the $772M analysts wanted, but Wall Street doesn’t seem to care.

The full year guidance for the company is also looking solid with the GMV forecast between $34.74B to $35.34B and revenue guidance between $3.13B to $3.19B. So yeah, it’s clear Affirm isn’t just crushing it, they’re body bagging everyone around them. 

(Source: Kiplinger) 

And the best part? They just reminded everyone that BNPL isn’t going anywhere—if anything, it’s becoming the backbone of consumer spending in a world where no one actually has money–especially as shares are up over 70% the past twelve months. Meaning, if these numbers keep trending upward, short sellers are about to get their faces melted off. 

In the end, if you’re an Affirm shareholder, congrats—your sugar momma just put Klarna, Afterpay, and every other BNPL wannabe on notice. The game is theirs to lose now. On the other hand, for those of you on the outside with this one, keep an eye on Affirm as they continue through next quarter. 

(Source: Giphy) 

Because with Affirm officially weaving itself into the e-commerce fabric–with exclusive deals with Apple, Amazon, and Shopify, it’s becoming the default BNPL provider for millions of transactions. This means more retailers = more users = more data = better underwriting = and ultimately more $$. What could be better than that? Of course, do your due diligence to see if this play is right for you and place your bets accordingly. And as always, stay safe and stay frosty, friends! Until next time… 

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Stocks.News holds positions in Apple and Amazon as mentioned in the article.