The Affirm stock price staged a strong comeback and is hovering close to its highest level this year. AFRM was trading at $77.28, up by 147% from the lowest level this year. This surge has pushed its market capitalization to nearly $25 billion.
Affirm shares jumped as growth accelerated
The Buy Now, Pay Later (BNPL) industry has been on an upward trajectory in the past few years. Data by Grand View Research estimates that the sector was valued at $1.64 billion in 2022, a figure that will get to $145 billion by 2033.
Affirm has emerged as one of the biggest BNPL players in the United States. Data shows that the company’s annual revenue jumped from $509 million in 2020 to over $2.32 billion last year.
This growth will accelerate in the coming years, with analysts expecting its annual revenue to grow by 37% this year to $3.18 billion. The annual revenue is expected to hit $3.8 billion in 2026 and $5 billion in either 2027 or 2028.
Affirm’s growth has surged because its checkout option is embedded in most companies like Amazon, Walmart, Shopify, and Best Buy.
Its service also offers a quality value proposition to customers in that they can buy products and pay in four installments without interest. It makes money by taking a commission from retailers.
Affirm also charges interest on some forms of loans. According to its website, it charges an interest of between 0% and 36% for larger purchases.
The most recent results showed that the company’s growth continued in the last quarter. Its Gross Merchandise Volume (GMV) rose to by 36% to $8.6 billion as the active customers soared to 21.9 million.
These customers are transacting more, with the average transaction per customer rising to 5.6 from 4.7 a year earlier.
Affirm’s revenue jumped from $576 million in Q3’24 to Q3’25, a 36% growth rate. This growth was notable as it happened as retail sales remained under pressure.
Most importantly, the company started turning a profit. It had a net profit of $80 million in the December quarter and $2.8 million in the last quarter.
Afirm earnings ahead
The next important catalyst for the Affirm stock price will be its fourth-quarter and full-year results on August 28. These results will provide more information about how its business performed amid the tariff uncertainty.
Analysts expect the upcoming results to show that its revenue rose by 26% in Q4’25 to $837 million. The most optimistic analyst estimate that the revenue jumped to $853 million.
They expect that the earnings-per-share will be 44 cents, up from 14 cents in the previous year.
The risk, however, is the view that Affirm stock is highly overvalued as it trades at $77.28, higher than the average estimate of $73. However, its stock will continue doing well if it demonstrates that it can keep growing profitably.
Affirm stock price technical analysis
AFRM stock chart | Source: TradingView
The daily chart shows that the AFRM stock price has been in a strong bull run in the past few months. It jumped from a low of $30.9 in April to $77.28, its highest level since February.
Affirm stock has moved above the ultimate resistance of the Murrey Math Lines point at $75. It jumped above the 50-day and 100-day Exponential Moving Averages (EMA).
Also, the Relative Strength Index (RSI) has continued rising. Therefore, the stock will likely continue rising as bulls target the overshoot point at $82.50. A move above that level will point to more gains, potentially to the extreme overshoot point at $87.5.
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