Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Affirm Stock Is Ready To Rally

By MarketBeat.com (Jea Yu )Stock MarketsJun 30, 2021 06:10AM ET
www.investing.com/analysis/affirm-stock-is-ready-to-rally-200589034
Affirm Stock Is Ready To Rally
By MarketBeat.com (Jea Yu )   |  Jun 30, 2021 06:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

E-commerce network and solutions platform provider Affirm (NASDAQ:AFRM) stock is rallying off its post-IPO lows as ecommerce continues to flourish in a post-pandemic era as reopenings continue to get underway. The Company provides of payment financing options for purchases from popular brands like the Moon Pod, Peloton (NASDAQ:PTON) , Dyson, Casper Sleep (NYSE:CSPR) along with offerings from over 6,500 merchants on its platform. Merchants are enamored with the boost in sales when Affirm enables customers to make monthly installment payments, also known as buy-now-pay-later (BNPL) programs, through them. Ecommerce coupled with BNPL comprise strong secular tailwinds that should expand growth. Consumers are enamored by the frictionless and streamlined manner of making large purchases in smaller bite-size payments.

The Company makes fees from both the customer and merchant all while facilitating the sale. Payment plans can range from three months up to 48 months with many interest-free options. The pandemic has accelerated e-commerce adoption by a decade and its showing to be a lot stickier than analysts assumed as it becomes a pivotal cornerstone of the new normal. It’s a partnership with Shopify (NYSE:SHOP) enables over 10,000 merchants on its platform to provide ShopPay BNPL plans powered by Affirm’s technology. Prudent investors seeking to gain exposure in e-commerce regardless of the brand with a major BNPL facilitator can look to build a position in Affirm shares at opportunistic pullback levels.

Q3 Fiscal 2021 Earnings Release

On May 18, 2021, Affirm reported its fiscal Q3 2021 results for the quarter ending Mar 2021. The Company reported an earnings-per-share (EPS) loss of (-$1.06) versus (-$0.26) consensus analyst estimates, an (-$0.80) miss. Revenues grew 66.8% year-over-year (YoY) to $230.67 million, beating analyst estimates for $197.94 million. Active merchants doubled to nearly 12,000 by March 31, 2021 from year-ago. Average transactions per active customer were 2.3, up 10% YoY. The Company completed its acquisition of Returnly, a leader in online return experiences and post-purchase payments serving over 1,800 merchants and eight million shoppers.

CEO Statement

Affirm Founder and CEO Max Levchin stated:

“Affirm’s strong third-quarter results reflect continued progress toward building the most valuable and trans parent financial network for consumers and merchants. During the period, we more than doubled the number of merchants on our platform, accelerated GMV (gross merchandise value) growth to 83%, and increase active consumers 60% year-over-year”

He continued:

“We are seeing strong momentum in our business as we advance our growth strategy. In recent weeks, we have activated ShopPay Installments powered by Affirm for more than 10,000 Shopify merchants. We expect this number to significantly increase as we move towards general availability in June.”

Raised Q4 Fiscal 2021 Guidance

Affirm raised its fiscal Q4 2021 revenues to come in between $215 million to $225 million versus $208.17 million consensus analyst estimates. The Company expects to see GMV growth accelerate in categories with “pent-up demand”, including travel and ticketing, which grew 50% YoY in Q3. The merchant network growth will lead to more adoption of BNPL which adds directly to the top and bottom line. The bar has been set rather low heading into the reopening as the new consumer preference is to shop and compare online before making the trip to the brick and mortar stores. The convenience and making expensive purchases in bite-size pieces makes BNPL one of the strongest tailwinds that consumers will drive for the foreseeable future.

Affirm Holdings Stock Chart
Affirm Holdings Stock Chart

AFRM Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provides a precision view of the landscape for AFRM stock. AFRM stock peaked near the $147.46 Fibonacci (fib) level after its IPO and managed to collapse as low as $46.50 during the pandemic before staging a rally. The weekly rifle chart has rallied to a make or break set-up as the weekly 5-period MA support is rising at $64.20 to attempt a crossover through the 15-period MA at $65.73. The weekly stochastic has a mini pup nearing the 40-band. The daily rifle chart is also in a make or break inversely with the falling 5-period MA at $64.63 crossing down through the 15-period MA at $65.21 as the daily stochastic is in a mini inverse pup. The daily market structure low (MSL) buy triggered on the breakout above $54.61. The daily lower Bollinger Band (BBs) sit near the $56.79 fib with upper BBs at $72.22. Prudent investors can monitor for opportunistic pullback levels at the $62.37 fib, $59.52 daily MSH trigger, $56.79 fib, $54.61 daily MSL trigger, $52.98 fib, $47.62 fib, and $43.58 fib. Upside trajectories range from the $78.09 fib up to the $104.41 fib level.

Original Post

Affirm Stock Is Ready To Rally
 

Related Articles

Affirm Stock Is Ready To Rally

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email