Affirm Holdings Inc. sees price rise amid Klarna's mobility payment expansion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 03 2025
0mins
Source: 4
Affirm Holdings Inc. experienced an 8.59% increase in its stock price, reaching a 20-day high.
This price movement comes amid Klarna's recent partnership with Bolt to enhance mobility payments, which could intensify competition in the payments sector where Affirm operates. Klarna's integration of payment options into the Bolt app is expected to expand its user base significantly, potentially impacting Affirm's market position.
The implications of this partnership suggest a growing competitive landscape in the payments industry, where Affirm will need to innovate to maintain its market share.
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Analyst Views on AFRM
Wall Street analysts forecast AFRM stock price to rise
22 Analyst Rating
17 Buy
5 Hold
0 Sell
Strong Buy
Current: 85.780
Low
65.00
Averages
87.72
High
107.00
Current: 85.780
Low
65.00
Averages
87.72
High
107.00
About AFRM
Affirm Holdings, Inc. provides consumers with an alternative to traditional payment options. The Company is engaged in building a payment network. Its platform comprises three core elements: point-of-sale payment solutions for consumers, merchant commerce solutions, and a consumer-focused app. Its Affirm App and Website provide tailored offers from merchants based on consumers' preferences. Consumers can apply at affirm.com or via the Affirm App and, upon approval, receive a single-use virtual card to use online or in-store. Its Affirm Card allows consumers to link a bank account to pay in full, or apply to pay overtime through the Affirm App. It offers users an in-app post-purchase feature that allows them to instantly apply to convert any eligible debit transaction into an installment loan. Through the Affirm app and in partnership with Cross River Bank, it offers a savings account, with no minimum deposit requirements or fees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Micron Long-Term Agreements Outlook: Micron CEO Sanjay Mehrotra indicated that more long-term supply agreements are expected, with 16 currently in place; as memory chip prices soar and supply tightens, this will provide greater market visibility and confidence for Micron's future plans.
- Nike's Underwhelming Quarter: Nike's quarterly results were uninspiring, showing slight improvement over the previous two quarters but not enough to anticipate a major turnaround, reflecting analysts' cautious sentiment regarding the brand's future performance.
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- Analyst Rating Upgrade: Deutsche Bank raised Affirm's price target from $80 to $85 while maintaining a Buy rating, with analysts highlighting the Affirm Card as a 'substantial upside driver', indicating growing market confidence in the stock.
- Strong Price Surge: Affirm Holdings Inc. (AFRM) has surged nearly 80% this quarter, on track for its strongest quarterly gain in over two years, reflecting the positive impact of strong results and recent strategic integrations on investor sentiment.
- Optimistic Market Consensus: According to Koyfin data, 22 out of 31 analysts covering Affirm rate it a 'Buy' or higher, showcasing widespread optimism about its future growth, especially following target increases from firms like Deutsche Bank and Susquehanna.
- Significant User Growth: The Affirm Card has grown to over 4.4 million active users, with the company's gross merchant value increasing by 35% year-over-year, while third-quarter revenue rose 33% to $1.04 billion, exceeding analyst expectations and further solidifying its market position.
See More
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- Analyst Rating Divergence: Despite PayPal's discounted valuation, 31 out of 43 analysts rate the stock as a 'Hold,' indicating a cautious market stance on its growth prospects, with a 12-month price target suggesting a 16% upside, reflecting a complex investor outlook on future performance.
- Price Target Downgrade: Piper Sandler analyst Bill Carcache lowered PayPal's price target from $46 to $42 while maintaining a 'Neutral' rating, indicating a reserved outlook on the company's short-term performance despite potential upside.
- Financial Performance Analysis: PayPal reported Q1 net revenue of $8.4 billion, a 7% year-over-year increase, although GAAP operating income fell 3% to $1.5 billion, highlighting challenges in profitability amid post-pandemic market shifts, while total payment volume grew 11% to $464 billion, indicating ongoing activity growth on the platform.
- Management Strategy Adjustment: New CEO Enrique Lores is focused on improving operational efficiency and modernizing technology, with an aggressive buyback strategy totaling $6 billion over the past 12 months, aiming to drive profitability through streamlined operations and clear accountability, although market skepticism about execution remains.
See More
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- Rating Downgrade: Morgan Stanley downgraded Affirm Holdings (AFRM) from Overweight to Equalweight and removed it as a Top Pick, indicating that its stock price now fully reflects the company's strengths.
- Stock Performance: Over the past month, Affirm (AFRM) shares have surged 18%, contrasting with the S&P 500's 1.8% decline, highlighting its relative market strength.
- Business Quality: Analyst James E Faucette emphasized that Affirm remains one of the highest quality fintech assets in their coverage, boasting a best-in-class management team and differentiated product capabilities, benefiting directly from BNPL market share gains.
- Valuation Consideration: The downgrade is viewed as a valuation call, as the business's key drivers remain intact, yet the stock price has reflected GMV durability, ongoing funding execution, and strong credit performance.
See More
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- Qualcomm's Revenue Target Boost: Qualcomm raised its fiscal 2029 non-handset revenue target to $40 billion during its investor day, nearly doubling its previous target, with its new data center AI infrastructure strategy projected to contribute over $15 billion in revenue, indicating robust growth potential in emerging markets.
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