Stock Price & Analysis

Analysis and Insights

Technical Analysis:

AFRM's stock has shown resilience with a recent price increase, closing at 52.54 on March 24, 2025, with a 5.29% gain during regular market hours. The stock is trading above its 20-day and 60-day moving averages, indicating positive momentum.

Analyst Sentiment:

Analysts have maintained a positive outlook on AFRM, with multiple firms initiating or reiterating buy ratings. BMO Capital resumed coverage with a $69 price target, citing expectations of GMV/revenue upside and a path to $4.00 adjusted EPS by FY2027.

Recent News Impact:

Walmart's reduced partnership with Affirm has raised concerns, but analysts believe the impact is limited. The company's growth in direct-to-consumer channels and partnerships like Apple Pay are expected to drive future growth.

Conclusion:

Given the positive analyst sentiment, strong price action, and growth prospects, AFRM stock is a buy. However, consider potential risks like market volatility and the impact of the Walmart partnership reduction.

The price prediction for AFRM stock in 2025 is $69, driven by strong GMV growth and partnerships like Apple Pay. Analysts expect a 45% increase due to positive revenue surprises and expanding market share.

The S1 support level for AFRM Stock is $43.78 ,The R1 resistant level for AFRM Stock is $52.24.

As of the end of day on 2025-04-02, the price of AFRM Stock was $43.68.

The target price for AFRM Stock according to analyst rating is 71.19, with the highest price target at 86.00 and the lowest at 49.90. Analysts have a Moderate Buy rating on AFRM Stock overall.

The market cap of AFRM is $15.3B.

Analysis and Insights

AFRM appears overvalued based on several key metrics and recent developments:

1. High Valuation Metrics:

   • AFRM's EV/EBITDA ratio is elevated at 262.31 for Q2 2025, indicating a premium valuation compared to its earnings.
   • The price-to-sales (PS) ratio is also high, suggesting investors are paying a significant amount per dollar of revenue.

2. Stock Price Volatility:

   • AFRM's stock has dropped over 40% from recent highs, reflecting investor concerns about growth prospects and profitability.
   • The stock's price action shows heightened volatility, with a 5.29% increase in regular market hours on March 24, 2025.

3. Mixed Analyst Sentiment:

   • While some analysts, like BMO Capital, have initiated coverage with an Outperform rating and a $69 price target, others have downgraded or maintained cautious stances.
   • This mixed sentiment highlights uncertainty about AFRM's ability to meet growth expectations.

4. Walmart Partnership Concerns:

   • Recent news indicates Walmart is reducing its collaboration with Affirm, which could negatively impact revenue and profitability.
   • This shift underscores potential challenges in maintaining high-margin partnerships.

Conclusion

AFRM's high valuation, stock volatility, and partnership risks suggest it may be overvalued at current levels. Investors should exercise caution and consider waiting for a correction or clearer signs of stable growth.

Affirm Holdings, Inc. provides a platform for digital and mobile-first commerce. The Company's platform comprises three core elements: point-of-sale payment solutions for consumers, merchant commerce solutions, and a consumer-focused app. Its point-of-sale solutions allow consumers to pay for purchases in fixed amounts without deferred interest, late fees, or penalties. It offers commerce enablement, demand generation, and customer acquisition tools. Consumers can use the app to apply for installment loans, and upon approval, they can use the Affirm Card digitally online or in-stores to complete a purchase. The Company’s platform provides consumer and merchant features. Its consumer features include checkout, consumer borrowing, virtual card, affirm app and marketplace and Affirm debit+ card. Its merchant features include affirm at Checkout, merchant dashboard, analytics, client success support, affirm app, and returns management, among others.

AFRM stock is predicted to reach $120-$150 by 2030, driven by strong revenue growth and high-margin services. The company's expanding partnerships and global adoption of buy-now-pay-later solutions support this bullish outlook. Analysts expect continued outperformance in the financial technology sector.

AFRM has a total of 2171 employees.