What will AFRM do tomorrow

Affirm Holdings (AFRM) is poised to continue its upward trajectory, with analysts expecting positive performance indicators for the company in the near term. Here's a detailed analysis:

1. Analyst Ratings and Price Targets: AFRM has received a consensus strong buy rating from analysts, with an average price target of $40.00, indicating potential upside from the current price.
2. Earnings Estimates: For the fiscal year 2025, the estimated earnings per share (EPS) is projected to be -$0.37, and for the fiscal year 2026, it is expected to improve to $0.02. This suggests a potential turnaround in profitability in the coming years.

3. Stock Performance: AFRM's stock has shown significant volatility, with a recent surge in price following the announcement of better-than-expected earnings for the fourth quarter. This positive momentum could continue, barring any significant market changes.
4. Market Sentiment: The sentiment is bullish, with a Fear & Greed Index indicating fear, which often precedes a potential market upswing. This sentiment could drive investor interest in AFRM stock.
5. Technical Indicators: The stock's technical indicators show a bullish trend, with a current RSI of 76.83, which is considered overbought but suggests strong buying momentum. The stock is also trading above its 50-day and 200-day moving averages, which are $29.43 and $34.79, respectively.
6. Regulatory and Growth Prospects: Despite potential regulatory risks, the company's growth prospects appear strong, with expected revenue growth of 32.90% in the current quarter and 26.60% year-over-year. This growth could attract investors looking for high-growth opportunities.

In conclusion, while there are risks associated with AFRM's current valuation and regulatory environment, the bullish analyst sentiment, strong growth estimates, and recent positive earnings surprises suggest that AFRM could be a solid investment for those looking to capitalize on the BNPL sector's potential. However, investors should monitor the company's ability to manage debt and navigate regulatory changes, which could impact its future performance.