Affirm: Can It Make It Through Macro Headwinds


  • Affirm is one of the more controversial companies in the IT space.
  • The shares are down more than 90% from their high 15 months ago.
  • The company reduced its forecast when it last reported earnings in November.
  • I believe the company has a significantly differentiated set of demand drivers that are unknown or underappreciated by many investors and some analysts.
  • The company has pledged to reach and sustain non-GAAP profitability starting on 7/1/23, and I believe it has the tools and financial levers to fulfill that expectation.

Women holding a smartphone with icons of BNPL with online shopping icons technology. BNPL Buy now pay later online shopping concept.

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Affirm: Can it satisfy investors in a fraught environment

Investing in the fintech space has not been good for the performance of a portfolio during the past 14+ months. Supreme understatement, I suppose. Depending on the definition of fintech, most of

Disclosure: I/we have a beneficial long position in the shares of AFRM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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