This is Why Affirm (AFRM) Was Up 30%

Late last week, shares of Affirm Holdings were up about 30% on a volume spike to 85.7 million shares, as compared to daily average volume of 16.28 million.

All after the buy now, pay later (BNPL) platform posted solid earnings, with optimistic guidance.

In fact, it posted a loss per share of 69 cents for Q4. That beat expectations for a loss of 85 cents. Revenue came in at $446 million, which was well above expectations for $406 million. Plus, it posted gross merchandise volume (GMV) of $5.5 billion – which was a 25% increase year-over-year (YOY). Analysts had targeted GMV to hit $5.3 billion.

Guidance was solid, too.

The company projected a revenue range of between $430 million and $455 million for the period. In contrast, the Street anticipates Q1 sales of $430 million.

Also, “Despite significant changes in interest rates and consumer demand, we still delivered good credit results, unit economics, and GMV growth,” stated Affirm Chief Financial Officer Michael Linford. “We also demonstrated that the business can continue to expand profitably even in a high-interest rate environment.”

As for the resumption of student loan payments, management acknowledged that it will be “a modest headwind” to its fiscal 2024 GMV.

Technically, if AFRM can break above resistance at $19.74, it could potentially test $22.75.