AFTPY - Affirm stock jumps as Afterpay deal may raise profile as takeover target

Affirm Holdings (NASDAQ:AFRM) shares climb 8.0% in premarket as Square's (NYSE:SQ) deal to acquire Afterpay (OTCPK:AFTPF) (OTCPK:AFTPY) shines a spotlight on the "Buy Now, Pay Later" space, perhaps making Affirm an acquisition target. Under the deal, Square will pay a 30.6% premium to Afterpay's previous closing price and almost 30x AFTPF's 2022 sales. Truist Financial analyst Andrew Jeffrey, though, considers the Square/Afterpay combination as a "modest negative" for AFRM, "although we have argued that Affirm's BNPL offerings are competitively differentiated by its complex underwriting, high AoV and leading data." Still, he points out that AFRM could become an attractive acquisition target. Afterpay price/sales (trailing twelve months) has far outpaced AFFRM's since AFRM went public in January 2021 as seen in chart below. See earlier (Aug. 1), Square's Afterpay deal spells 'clear negative' for PayPal, Truist says

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Affirm stock jumps as Afterpay deal may raise profile as takeover target