The Stock Soared 81% After Earnings in Just Five Weeks – Do You Know Which One?
There's been a stock that surged by 81% within five weeks after earnings. Do you know which stock this is?
Some Tigers have successfully unlocked the wealth code through different trading strategies.
Let's take a look!
Congratulations to Tiger @shunda for investing in $Affirm Holdings, Inc.(AFRM)$ and reaping a 122% profit.
Congratulations to Tiger @鱼头up for investing in $Affirm Holdings, Inc.(AFRM)$ stocks and options, resulting in gains of 81% and 297%, respectively.
Some of you may not be familiar with Affirm Holdings. This company primarily operates in the consumer lending business.
The company released a surprising fourth-quarter and full-year performance report, providing guidance for the first quarter of the 2024 fiscal year that exceeded analysts' expectations. In the days following the report's release, the company's stock price surged by 59%, and it has skyrocketed by 158% year-to-date.
Main customers
Compared to traditional lending companies, AFRM's primary business is 'Buy Now, Pay Later’ installment payments. Its advantages include low interest rates, a convenient loan process, and rapid approval, making it particularly popular among younger consumers, especially those from Generation Z and the millennial generation who may not have credit cards.
Competitive advantage among peers
According to statistics from the Consumer Financial Protection Bureau, the top five BNPL consumer lending companies in the United States (including $Affirm Holdings, Inc.(AFRM)$, Afterpay acquired by $Block(SQ)$in 2022, $PayPal(PYPL)$, Klarna, and Zip) saw a 970% YoY increase in BNPL loans issued between 2019 and 2021.
Aside from its robust business model, this company has also benefited from its partnership with $Amazon.com(AMZN)$. Earlier this year, it collaborated with Amazon Pay, becoming the first BNPL company to obtain payment rights through a retail giant. This partnership has played a significant role in helping the company achieve steady profitability in the most recent quarter.
Are you bullish on BNPL companies? Which company are you most bullish on?
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Persoanlly, I didn't traded Afrm before. I shared below my winning trade on NVDA. I released the position few weeks ago and now plan for new entry during this wave of pullback. Probably will monitor closely after the Fed meeting to have a safer position. Good luck guys.