Affirm Earnings: Profits On The Horizon, But This Stock Is Overvalued

Summary:

  • Affirm’s share price jumps nearly 10% premarket, signaling optimism about the company’s operations as an economically viable enterprise.
  • There are reasons to believe that Affirm could surpass analysts’ revenue estimates for the coming year.
  • However, the stock’s valuation is expensive at over 65 times forward non-GAAP operating profits, and competition in the buy now, pay later space is increasing.

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Investment Thesis

Affirm (NASDAQ:AFRM) has seen its share price jump nearly 10% premarket. Investors have for a long time been waiting for the moment went Affirm could declare that the business had turned a corner and


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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