Affirm: Short-Term Headwinds But Undervalued


  • Affirm is a leading Buy Now Pay Later provider, which has deals with major players such as Amazon and other providers which contribute to over 60% of U.S. retail ecommerce sales.
  • The company reported mixed financial results as it mixed both revenue and earnings expectations for Q2, FY23. This was mainly driven by short-term demand challenges, especially from its Peloton merchant.
  • Despite these challenges, Affirm has grown its active consumers by 39% year over year to 15.6 million.
  • 86% of transactions are also from repeat customers, which is a positive sign for the user experience of its product.
The New York Times 2015 DealBook Conference

Neilson Barnard

Affirm (NASDAQ:AFRM) one of the leading Buy Now Pay Later [BNPL] providers in the U.S. The company was a pioneer in this space, founded in 2012, two years before competitor Afterpay in 2014. Its founder and CEO is also a living legend named Max Levchin, who

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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