What is the future of Affirm stock?
8/29/2025 04:40pm
**Affirm Holdings (AFRM) is poised for a bullish trend**, and here's why:
1. **Strong Earnings Performance**: Affirm Holdings reported fiscal Q4 earnings that exceeded expectations, with revenue increasing by 33% year-over-year to $876.4 million. The company's gross merchandise volume (GMV) grew by 43% to $10.4 billion. This robust performance underscores the company's growth potential and market traction.
2. **Return to Profitability**: The company achieved a return to profitability in Q4, with a disciplined cost management that led to a $425 million operating profit. This shift is a positive indicator for investors, as it suggests that Affirm is effectively managing its resources to generate profit.
3. **Positive Market Sentiment**: Despite the earnings beat, the stock experienced volatility, with a 16.33% surge in pre-market trading on August 29, 2025. This reaction reflects positive market sentiment, as investors responded favorably to the company's strong performance and guidance.
4. **Upcoming Events**: The upcoming earnings release on August 28, 2025, is anticipated to provide further insights into the company's performance. Analysts are optimistic, with a consensus price target of $76.29, indicating potential upside.
5. **Forecasted Price Trend**: The price trend forecast for AFRM is bullish, with a 34% probability of continuation over the short term. This aligns with the current market sentiment and the company's strong fundamentals.
6. **Support and Resistance Levels**: The stock is currently positioned between narrow support and resistance levels, suggesting a potential for price swing rather than a trend reversal. The forecast advises holding the stock, with a historical win rate of 53.69% for this type of forecast.
7. **Analyst Confidence**: The consensus rating for AFRM is a "Strong Buy," with analysts setting an average one-year price target of $76.29, which suggests potential upside from the current price.
In conclusion, Affirm Holdings (AFRM) is experiencing a bullish trend, driven by strong earnings, market outperformance, and positive market sentiment. Investors may consider holding their positions, especially in the near term, given the favorable outlook and potential for price appreciation.