I’ll do my best to tell you why Affirm [BNPL] is a good stock. I really like Affirm because they are growing fast to Amazon, Walmart and Target and over 13 other retailers are their customers. Seems like nothing can stop Affirm right now.Despite facing larger, more profitable competition, Affirm is priced as if it will be the largest BNPL provider, measured by GMV, in the world, on top of immediately achieving profitability.
Their Ceo: Affirm founder and CEO Max Levchin has a record of developing successful and innovative payment systems: he’s one of the founders of PayPal.
Why $AFRM could be valuable:
The buy-now-pay-later has enormous upward momentum. Sales have increased dramatically and the increase is expected to continue.
McKinsey & Company’s annual POS Financing Survey found that about 60% of consumers are likely to use point-of-sale financing over the next six to 12 months.
Affirm does not charge late payment fees and has a fixed monthly payment system. This feature is attractive to users who are concerned with the complexities of credit card billing and payment.
Rapid user growth, high customer retention, and a rapidly expanding market add up to very strong growth prospects for $AFRM.We have recently seen that BNPL stock has declined, but Affirm range is 150-220 for long term we can see up to 300.
Over half of American consumers say they’ve used a BNPL service since the COVID-19 pandemic began, with 45% saying they use one at least once a month or more, C+R Research reports. These statistics suggest that retailers that want to remain competitive can no longer afford not to have a BNPL option in place.
Here is really good artical about Affirm and Crypto : Affirm founder Max Levchin on American Airlines deal, crypto
Affirm makes money on the interest it charges for its consumer loans as well as fees paid by the merchants to handle payments on their behalf.
So far, the firm has stirred away from focusing on any other income channels. Given that the global market for online payments is valued at almost $5.5 trillion, there’s plenty of money to be made within its current business model.
‘‘Amazon recently expanded its partnership with Affirm, who’s now the exclusive BNPL provider for Amazon in the U.S. through January of 2023. Amazon received two tranches of Affirm warrants that span through 2025 and 2028 respectively, while they are subject to certain performance measures. Affirm’s BNPL solution will be an integrated payment option within Amazon Pay. This is an intriguing partnership as Amazon’s tested multiple BNPLs and chose to partner with Affirm and now Amazon is aligned with Affirm’s success.’’
If there is something you want to add just write. I’m not good at data so let it go to someone else. I will constantly update all information because I believe that Affirm will take over the BNPL market. The next earnings will be larger than we saw a couple of weeks ago. Affirm is growing fast.
I want to thank everyone and hope you have some criticism for me. Will be fun to talk Affirm with you guys!