Weakness was Opportunity in Affirm Holdings Stock

Nov 28, 2023

Weakness has again led to opportunity.

Look at Affirm Holdings (AFRM), for example.

On October 25, we noted, “Keep an eye on Affirm Holdings (AFRM). A good deal of the downside is an overreaction on news that doesn’t even impact it.”

At the time, AFRM traded at $16.64. Today, it’s now back up to $26.23 and still running. All thanks to buy now, pay later momentum and earnings. In its most recent quarter, the company did post an EPS loss of 57 cents, but it beat by 13 cents. Revenue of $497 million, up 37.4% year over year also beat expectations by $52.53 million.

Even better, Adobe expects usage to peak in November with spending of $9.3 billion, including a single-day record of $782 million on Cyber Monday. Overall, Adobe estimates one in five Americans plan to use buy now, pay later plans to purchase holiday gifts.

That being said, it’s not a shock that AFRM pushed aggressively higher.

AFRM last traded at $26.23. From here, we’d like to see it test $35 shortly.

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