Analysts Delve Deep Into Financial Results

Affirm Holdings Inc (NASDAQ:AFRM) saw a rollercoaster ride in its stock price this week, with shares climbing after a steep drop following the release of its fiscal third-quarter results. Analysts have weighed in on the financial results, with some expressing confusion over the market’s reaction.

JPMorgan analyst Reginald Smith upgraded Affirm Holdings from Neutral to Overweight, citing the company’s strong performance in the quarter. Despite beating headline and operating margin expectations, Affirm’s shares plummeted on Wednesday, leaving analysts scratching their heads.

Goldman Sachs analyst Michael Ng reiterated a Neutral rating on the stock but raised the price target, highlighting Affirm’s strong growth in gross merchandise volume (GMV) and the success of its Affirm Card, which now boasts over one million active cardholders.

Mizuho Securities analyst Dan Dolev reaffirmed a Buy rating on Affirm Holdings, noting that the stock’s decline may be linked to Shopify’s recent performance rather than any fundamental issues with Affirm. Dolev recommended buying on the strength of Affirm’s fundamentals.

On the other hand, Needham analyst Kyle Peterson maintained a Hold rating on the stock, expressing some concerns about the company’s lending-related revenue and allowance for credit losses.

Despite the mixed reactions from analysts, Affirm Holdings’ stock was up 4.6% to $33.06 at the time of publication on Thursday. Investors will be keeping a close eye on how the company continues to navigate the market’s response to its financial results.