“We anticipate that increasing competition from both existing BNPL players and more traditional financial institutions, along with the looming threat of a recession, could lead to slower growth for Affirm in coming quarters,” the analyst summarized. What’s he worried about, though?Ĭhiaverini’s concerns, briefly stated as they are, have weight and immediacy. Concern (or Lack Thereof) About the CompetitionĬircling back to Chiaverini, he cleverly quipped that investors should adopt a “sell now, buy later” strategy with Affirm. Still, as we’ll discover soon, Affirm is competing against companies with better-looking bottom lines. Sure, that’s an improvement over the $287.1 million net loss from the previous-year quarter. In that same quarter, Affirm sustained a $54.7 million net earnings loss. Also, the company increased its gross merchandise volume by 73% to $3.9 billion, and its total revenue by 54% to $354.8 million. During the first three months of 2022, Affirm grew its base of active consumers by 137% year over year to 12.7 million – not too shabby. The company’s most recently reported quarterly results present a “good news, bad news” scenario. We’ll discuss Chiaverini’s concerns in a moment – but first, let’s glance at Affirm’s financials. Wedbush analyst David Chiaverini initiated coverage of Affirm with an “underperform” rating and a not-too-ambitious $15 price target. Clearly, the sellers are in control of the price action and it’s hard to know when the carnage will finally stop. Since November of last year, AFRM stock has tumbled from a 52-week high of $176.65 to less than $20.
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