SCHA, RDDT, AFRM, DUOL: ETF Outflow Alert
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2025
0mins
Should l Buy AFRM?
Source: NASDAQ.COM
SCHA Share Price Analysis: SCHA's current share price is $26.82, situated between its 52-week low of $22.41 and high of $28.57, with a focus on the importance of the 200-day moving average for technical analysis.
ETF Trading Dynamics: ETFs function similarly to stocks but involve trading "units" that can be created or destroyed based on investor demand, impacting the underlying holdings significantly during notable inflows or outflows.
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Analyst Views on AFRM
Wall Street analysts forecast AFRM stock price to rise
22 Analyst Rating
17 Buy
5 Hold
0 Sell
Strong Buy
Current: 44.790
Low
65.00
Averages
87.72
High
107.00
Current: 44.790
Low
65.00
Averages
87.72
High
107.00
About AFRM
Affirm Holdings, Inc. provides consumers with an alternative to traditional payment options. The Company is engaged in building a payment network. 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. Its Affirm Card allows consumers to link a bank account to pay in full, or apply to pay overtime 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 savings account, with no minimum deposit requirements or fees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Reaction: As of the afternoon of March 16, 2026, stock prices related to lending institutions have already been affected, reflecting investor anxiety over future credit risks, potentially resulting in higher financing costs.
- Credit Policy Reevaluation: Lenders may need to reassess their credit policies in response to the rising default risks, which could affect borrowers' access to financing and overall market liquidity.
- Economic Uncertainty: The rise in borrower default rates may signal signs of economic slowdown, prompting lenders to closely monitor macroeconomic indicators to formulate appropriate risk management strategies.
See More
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- AI and Wealth Creation: The debate over whether AI can create the world's first trillionaire is intensifying, attracting investor interest while cautioning against potential technology bubbles.
- Unique Company Report: A new report highlights a company dubbed an 'Indispensable Monopoly' that provides critical technology needed by Nvidia and Intel, potentially reshaping market dynamics and enhancing the competitiveness of these firms.
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See More
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- Strong Business Growth: Upstart reported an 86% increase in loan originations and a 64% rise in revenue, achieving a net income of $18.6 million for the third consecutive quarter, while Affirm's gross merchandise volume grew by 36%, with revenue up 30% and net income rising 61% year-over-year.
- Bank Charter Applications: Both companies have applied for bank charters, with Upstart aiming to become a full-service national bank and Affirm seeking an industrial loan charter, which would enable them to provide loans directly and reduce funding costs, thereby enhancing profitability.
- Optimistic Market Outlook: Despite the current challenging economic conditions, both companies are expected to see stock price recoveries once their charters are approved and interest rates decline, particularly Upstart, which may leverage its asset-light AI banking model to gain a competitive edge in the market.
See More
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- Stock Price Decline: Upstart and Affirm have seen their stock prices fall approximately 36% year-to-date, despite Upstart's impressive 86% growth in loan originations and 64% revenue increase in the last quarter, achieving $18.6 million in net income for the third consecutive quarter, indicating strong business growth potential.
- Valuation Concerns: Both companies are currently trading at around 58 times earnings, significantly down from Upstart's 168 and Affirm's 107 in December, raising investor concerns about their high valuations despite solid business performance.
- Credit Quality Issues: With the economy slowing and geopolitical tensions rising, investors are worried about potential defaults and deteriorating credit conditions, predicting that a decline in loans or an increase in defaults could negatively impact profitability by 2026.
- Bank Charter Applications: Both Upstart and Affirm have applied for bank charters, with Upstart aiming to become a full-service national bank, which would allow it to issue its own loans and generate interest income, thereby lowering funding costs and improving profitability, making their future outlook worth monitoring.
See More
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- Investor Confidence Eroding: The increase in redemption requests has shaken investor confidence in fintech loans from companies like Affirm and Block, reflecting escalating worries about consumer credit.
- Redemption Mechanism Constraints: As an interval fund, LENDX is required to repurchase at least 5% of outstanding shares each quarter, necessitating investors to submit redemption requests to exit their investments, further limiting liquidity.
See More
