-"
Affirm Is Still a Good Play on the Future of Shopping" by Daren Fonda points out that newly public
Affirm Holdings Inc(NASDAQ:
AFRM) is giving consumers a new way to make purchases, and no credit cards (or late fees) are required. Barron's thinks that could lift the shares of this leader, particularly in the e-commerce space.
->The reopening could be a major tailwind
Americans will be eager to spend on things they've been deprived of during the pandemic, including travel, restaurants, and entertainment. That's potentially an excellent growth opportunity for Affirm, as the company could capitalize on merchants' need to bring in revenue -- and consumers borrowing in order to take a flight to see family, or spend on a new wardrobe now that they have a reason to leave the house.
Affirm already counts among its merchant base leading online travel agencies Expedia and Priceline, a sign that travel seems like a natural use case for a BNPL product like Affirm. The company recently teamed up with VRBO and vacation rental company Vacasa, showing strong interest from travel businesses.
Affirm has a diverse mix of merchant partners, including pandemic winners such as
Peloton, but the company noted that revenue from travel, hospitality, and entertainment declined significantly during the pandemic. As pent-up demand for those categories comes back over the coming quarters, Affirm could surprise investors with better-than-expected results. The company called for revenue growth to slow significantly following a strong performance in its fiscal second quarter.
That, along with the long-term opportunity and the stock's recent pullback, gives it a lot of upside potential from here.<----
GBA SAYS--
This is the future buy now run later. I did this with my couch from England except I paid right away if I had paid later maybe I could of returned it except it came in such a large box. There was a company profiled on Bloomberg a really great company this is not that company. That company was from Europe and that company is the largest tech idea now in Europe and it's in banking-- Ole' fintech they call it I think.... Financial tech... well here is the American version, fresh off a healthy pull back... with Earnings on the way.... I think there may be a lock concern here which we are STILL WAITING FOR VAN to clear up and give is the final OK....