Affirm Stock Jumps 34% As Americans Keep Smashing That “Buy Now, Pay Later” Button

Let’s face it: we live in a world where waiting is for suckers. Why save up for something when you can have it right now and worry about the bill later? After all, this is the same country where our national debt is rocketing past $33 trillion, and we’re adding $5 billion to that tab every single day. 

If Uncle Sam can pile on debt like it’s a competitive sport, why shouldn’t we? That’s where Affirm comes in, turning our collective impatience into a highly profitable business model—and it’s paying off in a big way.

Today, Affirm shares skyrocketed by a whopping 34% after posting earnings that left analysts mouths wide open. This was the best day for Affirm stock in nearly three years, a triple crown moment if you will. In fact, it’s the third-largest rally for the company since its IPO in January 2021. So why the sudden spike? Simple: more people are choosing to “Buy Now, Pay Later” like their lives depend on it.

Let’s get into the nitty-gritty of what’s driving this surge. Affirm just dropped a loss of 14 cents per share—yeah, you read that right, 14 cents. Now, if you’re thinking, “A loss is still a loss,” you’re not wrong, but let’s put it into perspective: Wall Street was bracing for a 51-cent loss. So, 14 cents is basically a mic drop moment. 

And that’s not all. Revenue didn’t just go up; it exploded by 48% to a cool $659 million, leaving analysts’ expectations of $603.7 million looking like a joke. But wait, there’s more—Affirm’s gross merchandise volume (GMV), which is basically a fancy way of saying how much people are spending on their platform, hit $7.2 billion. That’s a whole $330 million more than the experts were betting on.

In short, Affirm is flexing on the competition, shrugging off economic woes as if they don’t exist. CEO Max Levchin has every reason to be confident, claiming that Affirm is outpacing competitors like Klarna. Levchin recently highlighted that their growth is leaving others in the dust, and based on the numbers, he’s not wrong.

(Source: CNBC)

Looking ahead, Affirm has big plans. They’re projecting revenue between $640 million and $670 million for the current quarter, and analysts are cautiously optimistic. There’s also talk of a new partnership with Apple Pay that could add a hefty $12 billion to Affirm’s total addressable market. 

Even after today’s impressive rally, Affirm shares are still down about 12% for the year. But with the stock up 50% in August alone, it’s clear that Affirm is riding a wave of positive momentum. And with Jerome Powell hinting at lower interest rates soon, the timing couldn’t be better. Lower rates mean cheaper funding for Affirm, which could make their 36% APR on loans even more appealing to consumers looking to rack up more debt.

Stock.News has positions in Apple.

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In the meantime, stay safe and stay frosty friends! Until next time…