An Industry piece argues BNPL delinquency is now observable and climbing, with Klarna and AFRM directly exposed as loan originators. Delinquent payments shift into credit data, letting lenders and analytics firms monetize behavior while also pressuring originators. For AFRM, the developing cycle suggests heightened sensitivity to borrower performance and related data revenue over the coming quarters.
Affirm began furnishing BNPL tradelines to Experian and TransUnion, increasing underwriting visibility for lenders. FICO's study shows most scores move within a 10-point range, yet the data could be monetized as a new asset. The near-term catalyst is lenders adopting FICO Score 10 BNPL, potentially boosting AFRM's underwriting efficiency and revenue upside.
Affirm's recent Investor Day showcased ambitious plans for reaching $100 billion in GMV by fiscal 2029, exceeding prior Wall Street expectations. Although shares dipped 3.55%, major analysts, including BofA, affirm a positive outlook and maintain their 'Buy' ratings with higher price targets, which could drive long-term price recovery.
Affirm Holdings is experiencing stock declines attributed to macroeconomic headwinds, including high inflation and interest rates. Despite a bearish market backdrop, analysts remain generally optimistic, with an average price target of $85.88 suggesting potential upside for patient investors.
The latest chart analysis for AFRM indicates emerging bullish momentum, which suggests that market conditions may favor price appreciation. As market trends support this movement, investors should monitor developments closely. Positive sentiment and momentum could lead to upward price movements in the near term.
Affirm (AFRM) reported a substantial 30% revenue increase, reaching $1.12 billion in its second quarter, driven by a notable rise in gross merchandise volume. This robust performance indicates strong demand for its buy now, pay later services and suggests a positive outlook for future growth.
