What's Going On With Affirm Stock?

Affirm Holdings, Inc. AFRM shares are trading higher Monday. Goldman Sachs analyst Will Nance assumed Affirm with a Buy rating and a $42 price target.

The Details:

Affirm shares fell last week after Apple, Inc. AAPL announced it would no longer offer its Apple Pay Later feature, which enabled users to pay off purchases up to $1,000 over four installments. The move comes as Apple plans to integrate third-party services into its upcoming iOS 18 software, Bloomberg reports.

Some analysts have indicated that the discontinuation of Apple Pay Later and Affirm's integration into future versions of Apple's iOS may be a growth driver for the company. 

Earlier in June, Affirm announced two new payment options, Pay in 2 and Pay in 30, to offer more flexibility and affordability for consumers using Affirm's app.

According to data from Benzinga Pro, Affirm shares are trading above the stock’s 50-day moving average of $31.83 and 12.34% of shares are being sold short. 

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AFRM Stock Prediction 2024:

Affirm Holdings’ revenue growth in fiscal year 2023 was 17.69%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at -0.2%, growing 2.2% from last year. The unemployment rate was most recently reported as 4.0%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Affirm Holdings stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against Affirm Holdings' peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Affirm Holdings operates in the Financials sector. The stock has experienced average annual growth of -20.28% compared to the -18.2% average of its peer companies. This is below the broader sector movement of Affirm Holdings.

AFRM Price Action: According to Benzinga Pro, Affirm Holdings shares are up 10.8% at $33.10 at the time of publication Monday.

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