Affirm is a disruptive company that discourages retailers from using traditional credit card companies. The share price has increased by more than 34% today due to strong financial results.
Affirm is a disruptive company with strong year-over-year growth. If you want to find out why you should buy this stock today, you are in the right place. The next sections also briefly introduce you to some of the company’s red flags, so you can make a better-informed decision.
Let’s start with where you can buy Affirm stock online.
How & Where to Buy Affirm Stock Online
If you want to trade or invest in Affirm (NASDAQ: AFRM), the tech company is available on several online brokerage platforms. All you need to do is select a broker that suits your trading style and register with it. These are our top picks right now:
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What Is Affirm?
Affirm is one of the hottest IPOs in 2021. Credit card companies typically charge their customers 1%-3% swipe fees per purchase or use ACH transfers to facilitate cheaper payments, but they require more processing time. Affirm’s platform does not charge any payments and it does not use the ACH networks, discouraging retailers from using traditional credit card companies.
Should I Buy Affirm Today?
Affirm has had an impressive performance so far – its revenues increased by 93% in FY2020. For 2021, the market participants expected a surge of 54%. On the 9th of September, the company reported an increase of 71%, which started the share price rally.
This growth was partly due to its partnerships with established market leaders like Amazon and Shopify. For instance, the active merchants on the platform increased by 412% due to Affirm’s partnership with Shopify. Thus, investors are bullish as the company proved its ability to drive growth despite competitors, such as PayPal.
One potential red flag you should be aware of is that the stock’s current valuation may seem a bit higher. Yet, this is not uncommon among tech, high-growth companies like Affirm.
Another warning comes from its top customer – Peloton Interactive which produces exercise bikes and benefited from social restrictions and gym closures during the pandemic. As expected, Peloton’s revenue growth has decreased lately.
Will Affirm be able to drive growth in the future without relying so heavily on this client? Perhaps the recent partnership with Amazon may help offset these losses.
Affirm Price Prediction 2021
Currently trading at $123.7, the highest estimates for the next 12 months reached $150. Bearish analysts have a prediction of only $65.
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