What are the risks you see? Any advice
Risk is stock drops to 10x P/E. Oh but there’s no E.
No competitive moat, just another financing company that is trying to drive more conversion.
Yawn, same old false argument. The moat in risk modeling. There’s a reason no credit card companies have successfully done it.
Also late fees. It’s 30% of competitors’ revenue. There’s no way they’re going to just eat that 30%, being as profitable off of that as they are. We don’t charge them already so we have that advantage. It’s not easily copied.
How hard it is for someone like PayPal or Visa to replicate the business model?
I think the biggest risk is coming from Shopify even though Shopify has agreement with Affirm and owns warrants in exchange for allowing Affirm to be the sole exclusive provider of buy now pay later solution for their merchants. It is a 3 year agreement expiring in July 2023. Nothing is stopping Shopify from moving upmarket at that point and taking Affirm out of the equation, they know the risk profile of their merchants in and out. And next is the concentration risk from Peloton who is accounting for a significant portion of the money transacted on Affirm's platform.
Shopifyay know the risk profile of merchants but that's different than the risk profile of consumers across all
India
15h
702
Why Worshipping Lord Ram Important in Hinduism?
Tech Industry
7h
782
Am I racist if I don’t want to marry a Southeast Asian? (Korean here)
India
Yesterday
1140
If the US were to invade India, how quickly would the US win?
Tech Industry
6h
302
Blind is an antisemitic cesspool
Tech Industry
9h
1118
Racism towards Indians
.competition heated with many companies including paypal now doing buy now pay later