AFRM - Affirm: Long Term Winner But Increased Risk With Competitors Entering The Public Market
- Affirm is one of the leaders in the buy-now-pay-later industry, one that has significantly benefitted from the global pandemic shifting consumers commerce more online.
- During the company's recent quarter, they reported GMV growth of 55%, driven by active customer growth of 57% and transaction per customer growth of 7%.
- Increased competition from Klarna, which has a valuation of $31 billion, and Katapult (via SPAC transaction) could add to Affirm's publicly listed competitors, potentially putting downward pressure on the stock.
- Valuation remains a bit high at ~20x forward earnings, though the long-term growth outlook remains very healthy for the company.
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Affirm: Long Term Winner But Increased Risk With Competitors Entering The Public Market