Affirm is decimated
15% down today and now trading at all time lows after earnings call. Guidance was made weaker because of Peloton but is that the only headwind? I get the feeling BNPL as a whole is unsustainable given how poorly Klarna is doing. Giving me real Opendoor, Clover Health, Chamath Palihapatiya vibes right now.
Take affirm loan and don’t pay. They are anyways going to go bankrupt next year. Buy Now Pay never!
Does this actually work lol. Would want to avoid ruining my own credit of course
Your credit score will tank.
I’m surprised it didnt fall even lower.
This is a really hot take to make when the entire economy is going down the shitter. Extrapolating some sort of meaningful takeaway right now is foolish.
Its been going down long before the market decline.
1 year is not a long time in markets. This was all expected after the 2020 boom.
The business model also doesn't work when rates are so high.
BNPL = Bapa Na Paisa Lutaya
Mota bhai
Affirm is really misunderstood at this point and clubbed together with all other BNPL and fintechs. It's near to profitability, has $3B in cash, very strong growth, low delinquencies, and a long-term very strong business model. In time, it will become clear that it is fundamentally different from others like Klarna and Afterpay.
Hey, can I dm for a new grad referral please?
Can you explain how it’s different?
As the other Affirmer said, the company is a bit misunderstood. However, I think he/she also misses the point. Next q will be bad in terms of revenue given the new revenue strategy. The following quarters will be better and better. (We will hold loans on balance sheet. Losses are declared at time loans are owned by Affirm (money is provisioned ahead of time) and profits come after principal is paid off and people begin paying interest). For those that get it though, Affirm is at the early stages of being a massively profitable company. We make up 2% of all online purchases and we are growing. We will introduce rewards and cash back soon. We have international growth to go. We have other products on the road map. I think the big fear people have is having big players come in, but I would ask them to look at Klarna and other BNPL that is struggling. The business is not as easy and cheap as it sounds to get into. Affirm is probably the most efficient company and we have almost 3k employees. It’s not going to be easy even for companies the size of Apple.
My Chase credit card just launched BNPL. Your moat is drying.
Unless the Chase plan shows make x payments of y dollars on the checkout page, it won’t do much. In fact, the Chase implementation is the worst one yet. Adds no value for me to sign up for BNPL since I already paid with CC AND it probably makes Chase less money than the CC interest would have collected.
BNPL is built on a business model of consumers not being able to make payments. I couldn’t work for a business like that.
Actually, it's the exact opposite of that.
BNPL is going to go down so badly https://youtu.be/R1JaMRpcDrQ