Affirm Holdings: Strong Growth Ahead - Play The Long Game
Summary
- AFRM is more attractive after the recent pullback, as the market also waits for the fintech to slowly grow into its premium valuations.
- FY2024 is set to bring forth the first year of adj operating profitability as the management focuses on healthy consumer and loan portfolio growth.
- With relatively reasonable delinquency rates compared to its peers and major credit card lenders, it appears that AFRM's BNPL platform has worked as intended.
- With the Fed pricing in three rate cuts in 2024, there may be some pressure in its profit spread, albeit potentially balanced by rising loan originations as borrowing costs moderate.
- Here is where we believe there is immense opportunities for investors with higher risk tolerance, since the stock appears to be well supported at current levels.
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