Affirm Holdings Inc
1 day chart
Kickstart your portfolio with a U.S. stock on us
Sign up and fund a new Wall St account and get a full share randomly chosen between GoPro, Dropbox or Nike.
Sign up and fund a new Wall St account and get a full U.S. share.
T&Cs apply
About AFRM
Affirm Holdings, Inc. provides consumers a flexible alternative to traditional payment options. The Company operates a payment network that helps consumers and merchants drive growth. Its platform comprises three core elements: point-of-sale payment solutions for consumers, merchant commerce solutions, and a consumer-focused app. Its Affirm App and Website provide tailored offers from merchants based on consumers’ preferences. Consumers can apply at affirm.com or via the Affirm App and, upon approval, receive a single-use virtual card to use online or in-store. Affirm Card allows consumers to link a bank account to pay in full, or apply to pay over time through the Affirm App. It offers users an in-app post-purchase feature that allows them to instantly apply to convert any eligible debit transaction into an installment loan. Through the Affirm app and in partnership with Cross River Bank, it offers a high-yield savings account, with no minimum deposit requirements or fees.
Buy US stocks in Australia starting with AFRM. Open an account and start investing today!
$21.48B
-
0.00%
0
$71.77
$67.33
$0.00
$72.10
$22.25
What is Affirm Holdings and what does it do?
Australia has Afterpay or Zip. Klarna hails from Sweden. Affirm is America's main contestant in the Buy Now, Pay Later (BNPL) game.
Founded in 2012 by former PayPal co-founder, Max Levchin, Affirm Holdings operates a platform for digital and mobile-first commerce in the United States and Canada. Its BNPL app allows consumers to buy goods and pay them off over varying lengths of time depending on the size of the purchase. Affirm proudly forgoes late fees on loans, and some merchant partners have interest rates as low as 0%.
One of Affirm’s competitive advantages is its algorithm, which is able to assess loan risk quickly and accurately by using over “one billion data points, including data from over 30 million loans and over seven years of repayments.”
The company also integrates merchant partners into its platform, including small businesses, large enterprises, direct-to-consumer brands and brick-and-mortar stores from a wide range of industries.
Affirm has stated the growth of their merchant partner network is key to the company’s future success.
How does Affirm make money?
Affirm earns its revenue from two sources: consumers and merchants. The company reports revenue in one business segment.
The first source of revenue is interest charged to consumers. Affirm originates loans through its own platform, Affirm Loan Services, or purchases them from originating bank partners including Cross River Bank and Celtic Bank.
The second source is the processing fees charged to merchants when sales are made. The size of the processing fee is dependent on the arrangement between Affirm and each merchant.
As of June 2021, Affirm had 7.1 million active consumers and over 102,000 merchant partners including Michaels, Walmart (WMT), Target (TGT), Neiman Marcus, Williams Sonoma (WSM), Shopify (SHOP), Amazon (AMZN) and Peloton (PTON).
Does Affirm make a profit?
No, Affirm is currently unprofitable.
The company’s net income sank deeper into the red at negative US$120m, US$113m and US$431m during FY2019, FY2020 and FY2021, respectively.
In June 2021, Affirm reported a net deficit of US$447.2m.
Is AFRM stock a buy or sell?
Affirm went public on 13 January 2021 at US$49 a share. The AFRM stock price almost doubled on the same day, eventually closing at US$97.24 per share. The stock remained strong for most of 2021, eventually climbing to an all-time high of US$175.65 in November 2021. However, rising inflation concerns, fears of a COVID-19 resurgence and geopolitical tensions saw AFRM share price drop 70% to an all-time low of US$26.02 in March 2022.
Despite strong revenue growth, investors have been concerned about the business’ losses. Operating expenses have been through the roof while net income sinks deeper.
However, some investors are still positive about Affirm’s future. Affirm’s most recent annual report showed active consumers had increased from 3.5 to 7.1 million between 30 June 2020 to 30 June 2021. A year-on-year increase of 97%.
Who owns AFRM stock?
As of March 2022, Affirm’s five largest shareholders are Jasmine Ventures (8.03%), Shopify (7.14%), Capital Research and Management Company (6.89%), Affirm CEO Max Levchin (5.93%) and Baillie Gifford & Co. (5.74%)
Ready to start your investing journey with Stake?
Open an accountAFRM FAQs
- Find the right investing platform for you. To buy AFRM shares in Australia, you’ll need to open an account with an investing platform that offers the security. Try Stake, you can sign up in minutes.
- Fund your brokerage account. Once you are set up you can deposit into your account with different payment methods.
- Search for AFRM or Affirm Holdings Inc. Find the stock by using the search function and go to the AFRM page.
- Place an order to buy AFRM. Press the ‘Buy’ button and choose an order type to place your trade. Depending on the order type, the trade will go through straight away or when a price target is hit.
- Monitor your portfolio. You’ve now purchased some AFRM shares. Stay on top of your portfolio and monitor its performance. You may be eligible for dividends and shareholder voting rights that affect your stock.
This is not financial product advice nor a recommendation to invest in the securities listed. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing. No representation is made as to the timeliness, reliability, accuracy or completeness of the market data provided.
Invest in AFRM
on Stake
Buy AFRM from US$3 brokerage
Invest in 9,500+ U.S. stocks and ETFs
Own a slice of AFRM from only US$10 with fractional shares
