Consumer financing firm Affirm Holdings (AFRM) is expected to report a wider loss in the September quarter amid slowing growth at customer Peloton Interactive (PTON). Affirm stock tumbled on Wednesday ahead of the report for its fiscal first-quarter.
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The company is due to report after the market close. Affirm stock fell 12.7% to 137.73 in midday trading on the stock market today. AFRM stock ranks No. 6 in the IBD 50 roster of growth stocks.
Analysts expect the provider of „buy now, pay later“ installment payment services to report a loss of 36 cents per share vs. a 22-cent loss a year earlier.
Wall Street sees the San Francisco-based firm reporting revenue of $248.7 million, up 43%. Gross merchandise volume will come in at $2.5 billion, analysts estimate.
Affirm Stock Garners Revenue From Interest
The initial public offering for AFRM stock in January raised $1.2 billion. Affirm garners most revenue from transaction fees paid by online retailers.
Buy now, pay later — or BNPL — services generally split interest-free payments into three or four equal installments over two months or less. However, Affirm stretches out some BNPL plans to as long as 60 months. In addition, Affirm gets more than one-third of its revenue from interest income paid by consumers.
Heading into earnings, Affirm stock had a Relative Strength Rating of 98 out of a best-possible 99, according to IBD Stock Checkup. But AFRM stock is extended from an IPO base of 138.08.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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