Affirm Holdings Inc. saw its stock price drop by 5.02% as it crossed below the 5-day SMA, reflecting broader market weakness with the Nasdaq-100 down 2.22% and the S&P 500 down 2.12%.
Despite the stock's decline, Affirm reported significant growth in its buy now, pay later (BNPL) service, reaching 90 million users and a gross merchandise volume (GMV) increase of 38% year-over-year, from $20.2 billion to $36.7 billion. The company also achieved its first profitable quarter on a GAAP basis, with an operating income of $63.7 million, showcasing its effective cost control and revenue enhancement strategies. Furthermore, Affirm projects a GMV of $47.5 billion by fiscal year 2026, indicating strong future growth potential.
The implications of this growth are significant, as Affirm's increasing market share and profitability position it favorably within the BNPL sector, even as the overall market experiences volatility.
Wall Street analysts forecast AFRM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AFRM is 95.50 USD with a low forecast of 83.00 USD and a high forecast of 114.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
Wall Street analysts forecast AFRM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AFRM is 95.50 USD with a low forecast of 83.00 USD and a high forecast of 114.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Buy
6 Hold
0 Sell
Moderate Buy
Current: 65.360
Low
83.00
Averages
95.50
High
114.00
Current: 65.360
Low
83.00
Averages
95.50
High
114.00
Needham
Hold
to
Buy
upgrade
$100
2026-01-27
New
Reason
Needham
Price Target
$100
AI Analysis
2026-01-27
New
upgrade
Hold
to
Buy
Reason
Needham upgraded Affirm to Buy from Hold with a $100 price target. The company submitted an application to establish Affirm Bank, a proposed Nevada-chartered industrial loan company, the analyst tells investors in a research note. The firm believes this could be a "game-changer" for Affirm. A bank would give the company access to deposit funding for loans, reduce its third-party risk by moving several products in-house, and potentially accelerate its growth and product development, the analyst tells investors in a research note. Needham is now increasingly confident in Affirm's medium-term growth and profitability outlook.
Cantor Fitzgerald
Ramsey El-Assal
Overweight
initiated
$85
2026-01-26
New
Reason
Cantor Fitzgerald
Ramsey El-Assal
Price Target
$85
2026-01-26
New
initiated
Overweight
Reason
Cantor Fitzgerald analyst Ramsey El-Assal initiated coverage of Affirm with an Overweight rating and $85 price target.
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Cantor Fitzgerald
Overweight
initiated
$85
2026-01-26
New
Reason
Cantor Fitzgerald
Price Target
$85
2026-01-26
New
initiated
Overweight
Reason
Cantor Fitzgerald initiated coverage of Affirm with an Overweight rating and $85 price target. The BNPL - buy-now-pay-later champion out-innovates and out-executes the competition, with the stock offering a long growth runway ahead, the analyst tells investors in a research note. The company has also built an impressive network of partners and marquee clients, which the firm sees as a key driver of global expansion, Cantor added.
Citi
Bryan Keane
Buy
maintain
2026-01-09
Reason
Citi
Bryan Keane
Price Target
2026-01-09
maintain
Buy
Reason
Citi analyst Bryan Keane reiterates Buy ratings on Affirm (AFRM), Klarna (KLAR) and Block (XYZ), saying it is bullish on buy now pay later in 2026. The firm believes BNPL is an "increasingly embedded payment and budgeting tool" across both online and offline commerce. It sees the sector positioned for "material" share gains, driving 20% volume growth in 2026 and beyond.
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.
