Why Is BNPL Firm Affirm’s Stock Soaring 14% Premarket Today?
Synopsis
According to Fiscal.ai data, the company reported fiscal fourth-quarter revenue of $876.42 million, which exceeded the $837.05 million expected by analysts.
Affirm stock (AFRM) jumped over 14% in premarket trading on Friday after the company’s fourth-quarter revenue comfortably topped Wall Street’s estimates.
According to Fiscal.ai data, the company reported fiscal fourth-quarter revenue of $876.42 million, which exceeded the $837.05 million expected by analysts. It also reported a net income of $69.2 million, compared with a net loss of $45.2 million in the same period last year.
“Profitability is, of course, a point in the journey, not the destination. The size of Affirm’s total addressable opportunity still rounds up to infinity,” Affirm CEO Max Levchin said in a letter to shareholders.
Retail sentiment on Stocktwits about Affirm jumped to ‘extremely bullish’ territory from ‘bullish’ a day ago, alongside a spike in retail chatter.
The buy-now, pay-later (BNPL) firm’s gross merchandise volume, which represents the total value of all transactions processed by Affirm, increased 43% to $10.4 billion.
Its active consumers increased by 24% to 23 million, and its active merchant count rose by 24% to 377,000. The company said its direct-to-consumer GMV jumped 61% to $3.1 billion, and Affirm Card GMV within this grew 132% to $1.2 billion.
“At a category level, general merchandise, electronics, travel and ticketing, and fashion and beauty were significant contributors to overall growth,” the company said in a statement.
“Love to see this open at $95,” one user wrote on Stocktwits.
The company projected fiscal 2026 GMV to be above $46 billion, with revenue accounting for 8.4% of the GMV. It also forecasted fiscal first-quarter revenue between $855 million and $885 million.
Affirm stock has gained 28.5% this year. The company has ties with Amazon.com and Shopify.
According to TradingView, Jefferies raised the price target of Affirm stock to $110 from $95.
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