Affirm Holdings, Inc. (NASDAQ:AFRM) recently revealed insights from a comprehensive survey, shedding light on consumer behavior trends pre-holidays in 2024. The study, encompassing 2,000 Americans, dissected the sway that 0% Annual Percentage Rate (APR) options possess in influencing purchasing decisions and bolstering budgeting adeptness. This narrative plays well into Affirm’s identity as a purveyor of adaptable and translucent payment solutions.
The survey illuminated that nearly half of the respondents (48%) are swayed by the allure of 0% APR. The advantages crucially cited by 28%, 19%, and 17% of participants respectively include interest cost savings, facilitation of larger purchases, and smoother financial planning. Moreover, a substantial 42%, 28%, and 25% of consumers deemed 0% APR offers suitable for furniture/appliance, electronics, and everyday item acquisitions, indicating a burgeoning proclivity towards AFRM’s offerings.
Further, despite prevailing macroeconomic jitters, a resounding 70% of Americans feel more emboldened in managing their finances as opposed to the previous year, as per the survey. This highlights a notable consumer confidence surge in financial dexterity.
At a recent Goldman Sachs Communacopia and Tech Conference, CEO Max Levchin elucidated Affirm’s transformation trajectory from its roots as a buy-now-pay-later entity to a comprehensive payments powerhouse. Levchin articulated a strategic vision for Affirm to emerge as a contemporary counterpart to American Express Company (NYSE:AXP), anchored in a pro-consumer ethos. Additionally, Affirm is poised to harness artificial intelligence for augmenting workforce productivity rather than displacing jobs.
Banking on its expanded ecosystem spanning a wider merchant base and enriched product portfolio, Affirm is primed to make its maiden foray into profitability in Q4 of fiscal 2024. The company has also revised its fiscal 2025 Gross Merchandise Volume (GMV) outlook to surpass $33.5 billion, underscoring its bullish outlook.
Affirm’s Market Position and Price Performance Analysis
Presently flaunting a Zacks Rank #2 (Buy), Affirm has seen its shares surge by 24.9% in the past six months, outpacing the industry benchmark’s marginal 0.5% uptrend.
Image Source: Zacks Investment Research
Exploring Alternative Investment Options
Investors on the lookout for potential opportunities in the broad Business Services realm may consider stocks like Fidelity National Information Services, Inc. (NYSE:FIS) and Paysign, Inc. (NASDAQ:PAYS), both boasting a Zacks Rank #2.
Projections indicate a robust 50.5% year-over-year surge in current-year earnings for Fidelity National, accompanied by a $10.2 billion consensus revenue estimate. Paysign is estimated to witness a 75% annual bottom-line growth with a 22.6% year-on-year revenue uptick, pegged at $58 million for the current year.
