Why Affirm Holdings Shares Are Trading Higher Today

Affirm Holdings Inc AFRM is trading significantly higher Monday after the company on Friday announced a partnership with Amazon.com Inc AMZN allowing customers to purchase items with an installment plan.

Some Amazon customers now have the option to split the total cost of purchases of $50 or more into simple monthly payments using Affirm. 

In the coming months, Amazon plans to make Affirm more broadly available to its customers. 

“By partnering with Amazon we’re bringing the transparency, predictability and affordability that Affirm provides today to the millions of people who shop on Amazon.com in the U.S.,” said Eric Morse, senior vice president of sales at Affirm.

Analyst Assessment: Multiple analyst firms raised price targets on the stock following the announcement:

• Barclays analyst Ramsey El-Assal maintained Affirm with an Overweight rating and raised the price target from $85 to $115.
• Mizuho analyst Dan Dolev maintained Affirm with a Buy rating and raised the price target from $76 to $110.
• Morgan Stanley analyst James Faucette maintained Affirm with an Overweight rating and raised the price target from $73 to $120.

AFRM Price Action: Affirm has traded as high as $146.90 and as low as $46.50 over a 52-week period.

At last check Monday, the stock was up 42.50% at $96.55.

Photo: courtesy of Affirm.