Affirm Holdings (AFRM) Expands Stripe Partnership With In-Store Buy Now Pay Later Option

Affirm Holdings (AFRM) recently expanded its collaboration with Stripe to integrate buy now, pay later services into Stripe Terminal, enhancing its market presence. This strategic move correlates with a 50% increase in Affirm's share price over the last quarter. The expansion, alongside partnerships with Google Pay and others, signals robust growth in payment flexibility offered to consumers across North America. Amid a backdrop of mixed market news, including record highs in major indices and inflation concerns, Affirm’s diverse partnerships, including with Boot Barn and Williams-Sonoma, likely added weight to the broader market trends contributing to its share price rise.

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The recent collaboration between Affirm Holdings and Stripe to embed buy now, pay later (BNPL) services into Stripe Terminal plays a significant role in reinforcing the company's narrative of enhanced market positioning and expanded reach. This development could drive revenue growth by boosting transaction volume as more merchants integrate this flexible payment option, responding to rising consumer demand. Over the past year, Affirm's total shareholder return was 192.36%, reflecting a very large increase, which places it significantly ahead of both the US market and the Diversified Financial industry returns.

On a longer-term scale, Affirm's share price increase of 50% last quarter suggests strong investor confidence in its growth prospects, despite current challenges such as earnings declines and competitive pressures. The integration with Stripe may positively influence forecasts for both revenue, projected to grow by 16.5% annually, and earnings, expected to turn profitable in the next three years. While the current share price of US$77.71 is slightly above the consensus price target of US$73.66, indicating market optimism, the narrow difference suggests analysts see limited upside potential, though the company's performance outpaces broader market trends.

In light of our recent valuation report, it seems possible that Affirm Holdings is trading beyond its estimated value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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