Affirm Stock >50% Decrease from ATH
The stock has decreased more than half of its value from its all time high price (146.90 —> ~66). What’s the sentiment at affirm considering how other IPOs are still doing relatively alrite and trading at multiple values from its ipo pricing? It seems as if the business is having a lot of internal trouble
That spike was just insane. Affirm is valued quite high at 17B with current share price, still ahead of IPO. Only have 500M in revenue.
SNOW has 68B with 500M revenue. I don’t think revenue impacts the valuation these days. It’s the future promise !
Yea but SNOW is the most severe example. You’re not wrong, but cloud companies and fintech also aren’t exactly the same. Gonna be hard to reach snowflake price to sales.
Affirms business model seems very easily replicable by Visa/ credit card companies...
Lol, what an amateur way to look at this. It’s not easily replicable which is why all the big players have failed even while sinking tons of money into it. The ML risk modeling is vastly superior to everything the credit cards companies have. We approve more people and have lower default rates than every single cc company. We also have the best unsecured consumer debt bonds on the market which gives us extremely efficient capital usage. Our only real competitors in the space is Klarna and Square.
Affirm what are thoughts on Plaid/Brex or is affirm competing more with paypal and paysafe etc?
"it seems as if the business is having a lot of internal trouble" I'm not sure where you're seeing that. There's been no news since last earnings really. I believe the drop has been mostly driven by a rotation out of high growth stock after a raise in rates.
We're still trading 2x the original IPO price, so I would imagine most of us are pretty happy.
Stock price is spiraling fast towards diminishing ecstasy. Time to jump the ship 🛸⛴
You know that Affirm was offering RSUs for 19$ a piece even 1 day before IPO ? People have got at least 3.5x of their initial grant.