Affirm Holdings, Inc. (AFRM) stock surged on Thursday, fueled by strong fourth-quarter financial results that exceeded analyst expectations and a positive outlook for the first quarter. The company’s performance generated significant optimism among investors.
Affirm reported that its fourth-quarter earnings surpassed analyst estimates by a substantial 72%, while revenue for the quarter grew nearly 50% year-over-year. The company’s Gross Merchandise Value (GMV) also saw impressive growth, increasing by more than 30%. Further fueling the positive sentiment, transactions on the Affirm network surged 42% year-over-year.
Adding to the upbeat news, Affirm provided first-quarter guidance that exceeded analyst estimates, suggesting continued momentum in the coming months.
In response to Affirm’s impressive performance, multiple analysts adjusted their price targets for the stock. RBC Capital maintained a Sector Perform rating and raised its price target from $43 to $46. B of A Securities maintained a Buy rating and increased its price target from $36 to $42. However, Needham reiterated its Hold rating on the stock.
Affirm’s stock is trading on heavy volume Thursday, significantly surpassing its 50-day moving average of $28.95.
Overall, Wall Street analysts view Affirm Holdings as a Buy, based on the history of coverage over the past three months. Jason Kupferberg from B of A Securities, specifically, is highly optimistic about Affirm, expecting a 16.67% rise in the stock over the next year.
Affirm Holdings stock has risen 5.27% in the past three months, suggesting a positive sentiment among investors. This positive trend could be attributed to the company’s robust revenue growth, which increased by 47.86% over the past year.
According to Benzinga Pro, Affirm Holdings shares were up 31.8% at $41.60 at the time of publication on Thursday. This significant surge in stock price underscores the market’s strong confidence in Affirm’s future performance.
