Investors Prism Index Mover: Affirm (AFRM) Makes an Affirmative Move in the IP Zombie Index
A leader in the Buy Now Pay Later (BNPL) space is led the pack in the Investors Prism Zombie Index yesterday. Affirm Holdings, Inc. (NASDAQ: AFRM) is a FinTech company who operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. The company’s platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Yesterday the stock opened the at $9.46 and shares climbed upward of 14% during Tuesday trade. AFRM closed the day at $10.50.
Recently the BNPL space has come under pressure as increases in competition along with interest rates have made it harder for these types of companies to operate. Even more ominous is the current banking crisis that has caused much hesitancy in the financial space. However, AFRM has given some investors solace in its recent remarks at the Bank of America Electronic Payments Symposium yesterday. As it relates to the current crisis, the company confirmed it did not have exposure to SVB or First Republic. Furthermore, they feel confident in their diversification strategy across business segments and partnerships. When asked about any noticeable trends in the past few weeks they cited that they have not seen anything noticeable but that it is a bit early to really identify a trend.
In addition to their symposium remarks, Davidson issued a report earlier this month that was upbeat, gave an optimistic outlook on AFRM’s ability to withstand the high-rate environment and believes it will be resilient in the space.
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