Can AFCG rebound after three straight earnings declines?

**AFC Gamma Inc. (AFCG) faces challenges for a rebound after three straight earnings declines.** Here's an analysis to support this view: 1. **Expected Earnings Decline in Q1 2025**: Analysts estimate that AFC Gamma Inc. will report a decline in earnings per share (EPS) and revenue for the quarter ending March 31, 2025, compared to the same period in the previous year. This trend of declining earnings adds to the concern about the company's financial performance and its potential impact on the stock price. 2. **Historical Performance Post-Downturn**: While there is a general tendency for stocks to rebound after significant declines, as evidenced by historical data, the immediate future of AFCG's stock is uncertain. The company's recent earnings declines and the expected continuation of this trend suggest that a rebound might not be imminent. 3. **Market Sentiment and External Factors**: The broader market sentiment, influenced by factors such as inflation data, tariff escalations, and consumer confidence, can affect AFCG's stock price even if the company's fundamentals are strong. Currently, the market is under pressure, which could make it challenging for AFCG to rebound, even if its earnings were to improve. 4. **Dividend Decline and Interest Income Issues**: AFC Gamma has experienced a decline in both distributable earnings and dividends. The decrease in interest income, which fell by approximately 26% from 2023 to 2024, is a significant factor contributing to the decline in earnings. These factors could affect investor confidence and make it harder for the stock to rebound. 5. **Looming Federal Reserve Decision**: The anticipation of the Federal Reserve's rate decision can influence market dynamics. While the Fed's decision is not directly related to AFC Gamma's earnings, it can impact market sentiment, which in turn could affect the stock's performance. 6. **Interest Rate Cut Expectations**: There is anticipation of interest rate cuts, which could positively impact AFC Gamma if the company is sensitive to interest rates. However, the timing of these cuts and their effect on AFC Gamma's business operations and stock price are uncertain. In conclusion, while there is a possibility of a rebound after significant declines, as historical data suggests, the current trajectory of AFC Gamma Inc. (AFCG) indicates challenges for a rebound in the near term. The expected continued decline in earnings, combined with broader market sentiment and external factors, makes it difficult to anticipate a swift recovery in the stock price. Investors should monitor the company's performance closely, including any strategic decisions or market conditions that could impact its financial health and stock price.