Affirm stock price rose for four consecutive weeks as investors cheered the ongoing Federal Reserve interest rate cuts and its partnerships with top companies. AFRM jumped to a high of $62 on Monday, its highest level since February 2022. It has soared by over 570% from its lowest point in 2023.
Affirm has inked numerous partnerships
The main catalyst for the Affirm stock surge this week was its decision to expand its partnership with Priceline, one of the top players in online travel. This partnership will focus on Priceline’s business-to-business solutions, which include companies like airlines, cruise lines, hotels, and car rentals.
Affirm has also inked numerous deals in the past few years. The most notable one was its partnership with Amazon, the biggest e-commerce company globally. That deal allows customers to select Affirm as a checkout option. Most recently, Affirm partnered with Apple Pay, giving it access to millions of customers.
It has also partnered with Hotels.com, a company owned by Expedia Group, as it seeks to expand its business in the leisure market. The company also partnered with Tekmetric, RONA, Brittain Resorts & Hotels, and Alterra Mountain. Altogether, the number of merchants using Affirm has grown to 323,000, a number that will likely continue growing.
These partnerships have helped to transform Affirm into one of the fastest-growing companies in the industry. Its annual revenue has soared from $509 million in 2020 to over $2.3 billion last year. Also, the number of Affirm’s active customers rose to over 19.5 million.
Analysts expect that Affirm’s business will continue doing well this year, with its revenue expected to hit $3.17 billion followed by $3.7 billion in the next financial year.
Read more: Here’s why Affirm stock could surge another 50%
AFRM had a strong quarter
Affirm stock price rallied after the company published strong financial results, signaling that its business was doing well.
Its gross merchandise volume jumped by 35% to over $7.6 billion in the first quarter of 2025. This growth led to a 41% increase in its revenue, which jumped to $698 million. Its revenue less transaction costs was $285 million.
The management believes that the industry is yet to scratch the surface since it has had a penetration rate of less than 8%.
It, therefore, expects that its business will continue doing well. Its next quarter’s GMV is expected to be between $9.35 billion and $9.75 billion. Its revenue for the quarter will be between $770 million and $810 million, with its operating margin being between 21% and 23%.
Affirm’s growth has been because of its business model, which many customers believe is better than credit cards. Unlike credit cards, Affirm does not charge interest for most of its offerings. It allows customers to buy for products and pay for them in equal installments.
Customers can select to pay for a longer period and pay interest. In some instances, the interest charged is usually less than that of credit cards. As such, Affirm has a large TAM since over 80% of all US adults have at least one credit card.
Affirm’s key challenge is that its business is that its business is facing substantial competition from top companies like Klarna and AfterPay. The other challenge is that the current stock price of $62 is lower than the average Wall Street estimate of $49.
Still, looking ahead a decade from now, I suspect that Affirm will be a significantly bigger company than it is today.
Affirm stock price analysis
AFRM chart by TradingView
The weekly chart shows that the AFRM share price has been in a strong comeback in the past few months. It has risen in the past four weeks, reaching its highest level since 2022.
Affirm has moved above the key resistance level at $52.65, its highest level in December last year. By moving above that resistance, it invalidated the double top chart pattern.
Affirm stock price moved above the overbought point. Similarly, the MACD indicator has moved above the zero line.
Therefore, the path of the least resistance for the AFRM stock is $100, which is about 625 above the current level. A drop below the support at $52.6 will invalidate the bullish sign.
The post Affirm stock price is soaring: will AFRM surge to $100 soon? appeared first on Invezz