AFRM Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Affirm Holdings Inc (AFRM) is not a strong buy at the moment for a beginner investor with a long-term strategy. Despite strong Q2 earnings and raised fiscal 2026 guidance, the stock's recent significant price drop (-11.99% in regular trading) and bearish technical indicators suggest caution. Insider selling and concerns about slowing growth further weigh on the stock. While the company has positive catalysts like partnerships and product innovation, the current market sentiment and technical trends do not align with an immediate buy recommendation.
The stock is in a bearish trend with the MACD histogram at -1.151 (negatively expanding), an RSI of 15.747 indicating oversold conditions, and moving averages showing a bearish alignment (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 51.884 and S2 at 48.34, suggesting further downside risk.
Strong Q2 earnings beat expectations on revenue and EPS.
Raised fiscal 2026 guidance.
New partnerships, such as with Virgin Media O2, to expand market presence and enhance customer experience.
Positive analyst sentiment highlighting growth potential through new products like AdaptAI/BoostAI.
Significant insider selling, with a 9784.32% increase in the last month.
Concerns over slowing growth in fiscal Q4, as noted by analysts.
Recent price drop of -11.99% in regular trading and bearish technical indicators.
Broader market weakness, with the S&P 500 down -1.54%.
In 2026/Q1, revenue increased by 33.62% YoY to $933.34M, indicating strong top-line growth. However, net income dropped by -180.52% YoY to $80.69M, and EPS declined by -174.19% YoY to $0.23, reflecting deteriorating profitability. Gross margin improved slightly to 92.33%, up 0.11% YoY.
Analysts maintain a generally positive outlook, with multiple Buy or Outperform ratings. However, price targets have been lowered across the board, reflecting tempered expectations. Analysts highlight strong Q2 results, partnerships, and product innovation as positives but express concerns about slowing growth and broader fintech sector weakness.
