SAN FRANCISCO - Affirm Holdings Inc. (NASDAQ: NASDAQ:AFRM), a $21.48 billion market cap company that offers flexible payment solutions, has announced partnerships with several new merchants, expanding the options for consumers to use pay-over-time services for a variety of products and services. According to InvestingPro data, the company has demonstrated impressive revenue growth of 46.55% over the last twelve months. This move comes as the company seeks to capitalize on the increased demand for transparent financing options during the holiday shopping season.
The new partnerships include a range of retailers such as Agape Diamonds, Discount Tires, Ever/body, FullBeauty, Garmin (NYSE:GRMN), Hotels.com, Living Spaces, and Sweetwater. These additions are part of Affirm's growing network, which now boasts over 320,000 merchant partners globally, marking a 20% increase from the previous year. In the United States, Affirm's reach includes integration with over 60% of e-commerce platforms.
According to Vishal Kapoor, Affirm's Senior Vice President of Product, the company has observed significant growth in transactions over the Black Friday and Cyber Monday weekend, particularly in the electronics and travel categories, with a year-over-year increase of 40% to 50%. This growth trajectory is reflected in Affirm's stock performance, with InvestingPro showing a remarkable 137.38% price return over the past six months. While currently trading near its 52-week high, InvestingPro analysis suggests the stock may be overvalued. Subscribers can access 8 additional ProTips and comprehensive valuation metrics through the Pro Research Report. Kapoor highlighted the consumer shift away from traditional credit cards towards more straightforward payment methods that Affirm offers, such as 0% APR financing and no hidden or late fees.
This trend aligns with market research from Forrester Research (NASDAQ:FORR), which predicts that the buy now, pay later (BNPL) services will continue to grow and contribute to increased holiday sales. Affirm's payment options are designed to help consumers manage their budgets more effectively, especially during periods of high expenditure, by offering biweekly or monthly payment plans after a quick eligibility check at checkout.
Affirm's approach emphasizes transparency, with no late or hidden fees charged to consumers. The company's mission is to improve lives by delivering honest financial products that prioritize trust and transparency.
Consumers looking to utilize Affirm's services can access them through the Affirm website or by downloading the Affirm app available on the Apple (NASDAQ:AAPL) App Store and Google (NASDAQ:GOOGL) Play Store. The company's payment options are subject to eligibility and are provided by affiliated lending partners, as detailed on their website.
The information for this report is based on a press release statement from Affirm. For deeper insights into Affirm's financial health, growth prospects, and detailed valuation analysis, investors can access the comprehensive InvestingPro Research Report, which is part of the platform's coverage of over 1,400 US stocks.
In other recent news, Affirm Holdings has been demonstrating robust growth and performance across multiple areas, as highlighted by BofA Securities and Mizuho (NYSE:MFG) Securities. BofA Securities has upgraded the price target for Affirm to $74, maintaining a Buy rating, while Mizuho Securities increased its price target to $69, maintaining an Outperform rating. These changes come as Affirm reports significant growth in gross merchandise value (GMV), outperforming competitors like Afterpay and Klarna.
Affirm's Residual Loan to Cost (RLTC) performance is reported to be at the high end of its target range of 3-4%, indicating strong profitability of its loan portfolios. Projections suggest a potential for positive GAAP operating income by the second quarter of 2025, indicating a path to sustainable profitability for Affirm.
In other recent developments, Affirm has partnered with Visa (NYSE:V) to introduce a new payment feature in the United States called "Flexible Credential," which allows users to access multiple accounts and funding sources with one card. The company is also preparing for a UK market launch, aiming to meet the demand for long-term payment products.
These are recent developments that are shaping the financial technology landscape. Affirm's funding situation appears to be secure, with strong demand from partners and the benefit of lower rates, supporting the company's operations and growth strategies. Affirm's roster of merchants, including names like Amazon (NASDAQ:AMZN), Shopify (NYSE:SHOP), and Walmart (NYSE:WMT), along with its diversified loan products, continues to differentiate the company in the market.
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