Lowe's Partners with Affirm for Buy-Now-Pay-Later Options
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy AFRM?
Source: Benzinga
- Enhanced Payment Flexibility: Lowe's is expanding its checkout options by partnering with Affirm to introduce buy-now-pay-later plans, allowing customers to split home improvement purchases into biweekly or monthly payments, with some plans starting at 0% APR, which is expected to attract more consumers and boost sales.
- Instant Decision and Transparent Fees: Affirm promises customers an instant decision at checkout and upfront visibility of the total repayment amount, with no compounding interest, late fees, or hidden charges, enhancing customer trust and facilitating purchasing decisions.
- Market Reach Expansion: Lowe's will be featured in Affirm's marketplace, which is expected to help Lowe's reach new shoppers, further expanding its market share; Affirm's merchant network is nearing 478,000, showcasing the widespread adoption of its payment tools.
- Analyst Divergence: While JPMorgan analysts express optimism about Affirm's profitability and have raised its full-year profit margin guidance to nearly 9%, they caution that the fourth-quarter outlook indicates a “meaningful deceleration,” which could impact stock performance, as evidenced by Lowe's 2.04% share price decline.
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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: 51.600
Low
65.00
Averages
87.72
High
107.00
Current: 51.600
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.
- Seller Dominance: A widely watched signal among institutional traders indicates that Affirm's stock is currently trading at $52, below the critical $54.32 short-term moving average, suggesting that sellers are in control in the near term, potentially leading to further declines.
- Key Resistance Level: The failure to reclaim the $54 resistance is significant, as the stock attempted to stabilize after a steep sell-off from January's highs near $83, but each bounce has been capped below this level, indicating weakening buyer conviction and confirming seller control of the short-term trend.
- Support Focus: The $50 level has emerged as the most important near-term support zone, and a decisive break below this psychological level could open the door to the lower Bollinger Band near $47, representing the next major technical support area and increasing the risk of further declines in the market.
- Technical Indicators Suggest Fragility: The Relative Strength Index (RSI) is hovering near 30, placing the stock close to oversold territory, and while this could allow for short-term relief rallies, sustained upside would likely require reclaiming the $54 level to shift momentum back in favor of buyers.
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- Enhanced Payment Flexibility: Lowe's is expanding its checkout options by partnering with Affirm to introduce buy-now-pay-later plans, allowing customers to split home improvement purchases into biweekly or monthly payments, with some plans starting at 0% APR, which is expected to attract more consumers and boost sales.
- Instant Decision and Transparent Fees: Affirm promises customers an instant decision at checkout and upfront visibility of the total repayment amount, with no compounding interest, late fees, or hidden charges, enhancing customer trust and facilitating purchasing decisions.
- Market Reach Expansion: Lowe's will be featured in Affirm's marketplace, which is expected to help Lowe's reach new shoppers, further expanding its market share; Affirm's merchant network is nearing 478,000, showcasing the widespread adoption of its payment tools.
- Analyst Divergence: While JPMorgan analysts express optimism about Affirm's profitability and have raised its full-year profit margin guidance to nearly 9%, they caution that the fourth-quarter outlook indicates a “meaningful deceleration,” which could impact stock performance, as evidenced by Lowe's 2.04% share price decline.
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- Office Real Estate Impacted: Stocks in commercial real estate were crushed on Thursday amid concerns that AI could lead to rising unemployment, thereby decreasing demand for office space, reflecting a pessimistic outlook from investors regarding future market conditions.
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- Strong Performance: Affirm Holdings reported fiscal Q2 revenues and volumes exceeding expectations, prompting management to raise its fiscal 2026 guidance, indicating resilience in the market.
- Growth Outlook Adjustment: While the company anticipates 32%-33% volume growth for fiscal 2026, surpassing the consensus estimate of 29%, analysts expressed disappointment over the fourth quarter's GMV performance, suggesting risks of slowing growth.
- Analyst Rating Changes: JPMorgan analyst Reginald Smith maintained an Overweight rating on Affirm but reduced the price target from $94 to $79, reflecting a cautious outlook on future growth.
- Market Reaction: Affirm's shares fell 1.26% to $59.42 in premarket trading on Friday, indicating investor concerns regarding the company's slowing growth trajectory.
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- Earnings Beat: Affirm reported earnings per share of 37 cents for Q2, surpassing the consensus estimate of 30 cents, indicating improved profitability that may attract more investor interest.
- Significant Revenue Growth: The company posted revenue of $1.12 billion, exceeding the expected $1.05 billion, demonstrating strong business expansion and market demand, which is likely to drive stock price appreciation.
- Customer and Merchant Growth: Active customers increased by 23% to 25.8 million, while active merchants rose by 42% to 478,000, showcasing Affirm's competitive edge and appeal in the market, potentially laying the groundwork for future revenue growth.
- Guidance Upgrade: Affirm raised its fiscal year 2026 revenue guidance to between $4.08 billion and $4.14 billion, reflecting confidence in future performance, which may enhance market sentiment towards its stock.
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- Stock Performance: Affirm Holdings' stock declined on Friday despite reporting strong fiscal second-quarter earnings.
- Analyst Opinions: Some analysts believe the market reaction to the earnings report is unjustified.
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