Affirm's Stock Drops 7.8% Despite $680M Volume Surge to 189th Rank, Earnings and Amazon Deal Spark After-Hours Rally

Market Snapshot

Affirm Holdings (NASDAQ: AFRM) experienced a mixed performance on November 6, 2025, . Despite the decline, , . The discrepancy between the strong volume and weak price action reflects heightened investor activity following the company’s earnings report and strategic updates. After-hours trading saw shares rebound sharply, , as investors reacted positively to Affirm’s fiscal Q1 FY2026 results and extended partnership with Amazon.

Key Drivers

Affirm’s fiscal Q1 FY2026 results served as a primary catalyst for market reaction. , , , . This marked a significant beat on both revenue and profitability, . , underscoring robust consumer engagement across its platform. These results demonstrated Affirm’s ability to scale while maintaining operational discipline, particularly in credit and funding costs, which alleviated concerns about long-term profitability.

A critical strategic development was the extension of Affirm’s U.S. agreement with Amazon for five years, effective February 1, 2026, through January 2031. This multi-year deal not only solidified Amazon as a durable distribution channel for Affirm’s buy-now-pay-later (BNPL) services but also amended Amazon’s warrant to purchase up to 15 million Affirm shares. The partnership, a key driver of Affirm’s growth, reinforced investor confidence in the company’s ability to leverage high-traffic e-commerce platforms to expand its user base. Analysts highlighted that the Amazon agreement reduces partnership-related uncertainties and provides long-term visibility for volume growth, particularly during peak shopping periods.

Affirm’s Q2 FY2026 guidance further fueled optimism. , . This guidance, combined with the Q1 beat and GMV momentum, positioned Affirm for continued demand during the holiday season. The midpoint of the Q2 range was viewed as a conservative estimate, with investors anticipating stronger-than-expected performance given the 42% YoY GMV growth and the extended Amazon partnership. Additionally, , , signaled improving efficiency, further supporting the stock’s after-hours rally.

Despite the positive developments, . On the same day, , , driven by concerns over expensive tech valuations and a risk-off sentiment. Affirm’s stock, , was particularly vulnerable to market swings. However, , strategic partnerships, . The company’s ability to convert high transaction volumes into profitability, , also distinguished it from peers in the BNPL sector.

The extended Amazon agreement and Q1 results collectively reinforced Affirm’s positioning as a leader in the BNPL space. By cementing its relationship with a major e-commerce player and delivering operational leverage, the company addressed key risks that had previously weighed on its stock. The after-hours price surge highlighted investor enthusiasm for Affirm’s ability to capitalize on the holiday shopping season, . However, , even for companies with strong fundamentals.

Market Reaction and Strategic Outlook

Affirm’s after-hours trading performance and extended Amazon partnership indicate a renewed focus on long-term growth and operational sustainability. . The strategic renewal of the Amazon agreement, effective in early 2026, ensures that Affirm remains embedded in one of the largest e-commerce ecosystems, providing a stable foundation for future volume expansion. Additionally, .

Looking ahead, , particularly in the BNPL segment. The company’s emphasis on direct merchant integrations and the Affirm Card program further diversifies its revenue streams, reducing reliance on any single partner. However, investors remain cautious about macroeconomic headwinds, , . The stock’s after-hours rebound, despite the regular-session decline, .