Affirm shares are down 75% YTD: here’s what the CEO has to say
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Wajeeh Khan
on
Jun 6, 2022
CEO Max Levchin says company “fundamentals” continue to be strong.
He, therefore, expects the market will eventually sort itself out over time.
Shares of Affirm Holdings Inc (NASDAQ: AFRM) are down 75% this year but CEO Max Levchin continues to be confident about the “fundamentals” of the company.
Affirm is doing extraordinarily well
Despite the sharp sell-off, Levchin doesn’t see the need for job cuts to lower costs since financially, the company is “doing great”. On CNBC’s “TechCheck”, the chief executive said:
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
Business is doing extraordinarily well. We’ve posted our 5th beat quarter. We’ve announced a clear date for profitability. We’re still growing in triple digits in all categories that matter to us. So, the market will have to sort itself out over time.
Last month, AFRM reported market-beating results for its fiscal Q1 and raised guidance for the full year. Wall Street, on average, sees a 60% upside in the stock from here.
Affirm Holdings can handle competition
On Monday, Apple Inc launched its own “buy now, pay later” program. Despite rising competition, CEO Levchin is convinced that Affirm can hold its own. Explaining why, he said:
Affirm is different. We improve consumers’ spending power but only with the ability to get repaid. We’ve been building technology and data; been really careful about our partnerships. We charge both consumers and merchants to build a sustainable business.
The San Francisco-headquartered fintech doesn’t charge a late fee or resort to deferred interest, which also makes it “unique” in the BNPL space, the chief executive concluded.
Capital.com
9.3/10
75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Visit site
Finance & Banking
Industries
North America
Services
Stocks & Shares
USA
World
