Cramer Says Affirm Is A Buy Despite Apple Threat

Affirm Holdings AFRM is a “good company” and the stock is a buy at current price levels, CNBC "Mad Money" host Jim Cramer said on Wednesday as shares of the fintech company fell for the second day in a row.

What Happened: Shares of San Francisco-based Affirm, a company that offers lending services for retailers, have fallen about 13% in the past two days after Bloomberg reported that Apple Inc AAPL is working on a “Buy Now, Pay Later” service, alongside  Goldman Sachs Group Inc GS.

Cramer told investors in a lightning round that he was stunned when Affirm went down after the Apple’s buy now, pay later news.

“I mean, Affirm is a good company, for heaven’s sake. It’s starting to really bug me ... I am a buyer at the $56 level.”

Truist analyst Andrew Jeffrey has maintained a buy rating on Affirm with an $82 price target. He believes the drop in share prices is an overreaction and said the offering will represent a comparatively small total addressable market if it sticks to strictly Apple cards.  

Price Action: Affirm shares closed 2.49% lower at $56.76 on Wednesday, and Apple closed 2.41% higher at $149.15.

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Photo: Courtesy of Affirm