Golden Financier
  • Investing
  • Stock
  • Latest News
  • Editor’s Pick
  • Economy

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
    Popular Topics
    • Emerging market assets poised for gains as US dollar weakens, says BofA
    • FCA moves to lift retail ban on crypto ETNs to boost UK market competitiveness
    • What a war with President Trump could cost Elon Musk’s business empire
    • Trade war poses greater threat than COVID for emerging market central banks: IMF
    • RBI turns neutral after sharp rate cut; ING expects another easing later this year
    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions
    Golden Financier
    • Investing
    • Stock
    • Latest News
    • Editor’s Pick
    • Economy
    • Stock

    Affirm secures largest-ever funding: what it means for investors

    • December 14, 2024
    • admin

    Affirm Inc (NASDAQ: AFRM) opened in the green this morning after private-credit firm Sixth Street agreed to buy up to $4 billion worth of its consumer installment loans.

    The transaction marks largest-ever capital commitment for the buy now, pay later company.

    Sixth Street has signed a “forward-flow agreement” with Affirm, meaning it has committed the capital even before the loans have originated.

    Affirm stock is now up some 200% versus its year-to-date low in early August.

    What Sixth Street deal means for Affirm stock

    The deal Affirm announced with Sixth Street today allows it to support loan originations worth more than $20 billion over the next three years.

    Non-bank lenders have been aggressively buying consumer loans from BNPL names like Affirm in recent months to expand in the asset-based finance market that’s estimated to be worth $5.2 trillion.

    The Sixth Street news arrives only days after Prudential Financial bought about $500 million of loans from AFRM.

    Others that have loaded up on debt portfolios recently include Blue Owl Capital and Fortress Investment Group.

    Note that Affirm stock is still down significantly from its high of $164 in late 2021.

    Affirm’s financials speak for themselves

    Michael Dryden – the head of asset-based finance at Sixth Street sees “tremendous opportunity in this partnership” as Affirm is unparalleled in offering flexible and scalable financing solutions.

    “We look forward to being a key funding partner and continuing to build on this relations to support the company’s [AFRM] growth in the years to come,” he added in a press release on Friday.

    Affirm’s gross merchandise volume (GMV) surpassed $28 billion in the 12 months through September.

    Last month, the buy now, pay later company reported better-than-expected financial results for Q1.

    AFRM narrowed its per-share loss on a year-over-year basis to 31 cents as revenue increase 41% to $698 million.

    Affirm now expects to hit GAAP profitability in the final quarter of 2025.

    Affirm stock to extend rally in 2025

    Affirm’s current-quarter guidance for revenue and GMV also surpassed analysts’ forecasts at the time.

    That’s part of the reason why BTIG analyst Vincent Caintic sees upside in AFRM to $81.

    His price target indicates potential for another 14% upside from current levels.

    Caintic expects financial technology companies “to occupy much of the debate in 2025”.

    He’s convinced that a sharp increase in volume and solid operating income margins will drive Affirm stock furth up in 2025.

    Other notable recent developments at Affirm include UK expansion, team up with Apple Inc, and the roll out of Affirm card.

    These initiatives will likely help the company unlock future growth as well.

    Our market analyst Crispus Nyaga also expects Affirm shares to enter beast mode in 2025.  

    The post Affirm secures largest-ever funding: what it means for investors appeared first on Invezz


    admin

    Previous Article
    • Stock

    SoundHound stock price is soaring: more upside?

    • December 14, 2024
    • admin
    View Post
    Next Article
    • Stock

    What made Evgo stock pop 10% on Friday?

    • December 14, 2024
    • admin
    View Post

      Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


      By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
      Popular Topics
      • Emerging market assets poised for gains as US dollar weakens, says BofA
      • FCA moves to lift retail ban on crypto ETNs to boost UK market competitiveness
      • What a war with President Trump could cost Elon Musk’s business empire
      • Trade war poses greater threat than COVID for emerging market central banks: IMF
      • RBI turns neutral after sharp rate cut; ING expects another easing later this year

      Input your search keywords and press Enter.