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Affirm Holdings (AFRM) Surges 5.1%: Is This an Indication of Further Gains?

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Affirm Holdings (AFRM - Free Report) shares ended the last trading session 5.1% higher at $37.57. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 31.2% loss over the past four weeks.

After several days of decline triggered by newly announced tariffs impacting tech and consumer finance sectors, Affirm saw its stock rebound. This uptick stood out on a bearish day for the broader market, suggesting a renewed investor appetite for the stock following the tariff-induced pressure.

Affirm's underlying operational strength and recent strategic moves boosted investor confidence. The company secured a $750 million funding deal from Liberty Mutual’s asset-management arm, providing a major lift to its lending capabilities. With ambitions to surpass $34 billion in loans this year and continued growth through partnerships like Apple Pay and an expansion into the UK, investors appear optimistic about Affirm’s long-term potential despite short-term macroeconomic headwinds.

 

This operator of digital commerce platform is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +83.7%. Revenues are expected to be $783.23 million, up 35.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Affirm Holdings, the consensus EPS estimate for the quarter has been revised 6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AFRM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Affirm Holdings belongs to the Zacks Internet - Software industry. Another stock from the same industry, Getty Images Holdings, Inc. (GETY - Free Report) , closed the last trading session 8.2% higher at $1.46. Over the past month, GETY has returned -35.1%.

Getty Images Holdings, Inc.'s consensus EPS estimate for the upcoming report has changed -28.6% over the past month to $0.03. Compared to the company's year-ago EPS, this represents a change of +200%. Getty Images Holdings, Inc. currently boasts a Zacks Rank of #5 (Strong Sell).


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