LikeFolio recently issued a bullish alert for Affirm Holdings (AFRM), citing strong growth in underlying Consumer Demand. Affirm’s Purchase Intent Mentions have maintained their upward trajectory, currently up +66% YoY on a 90-day moving average.
That Demand growth was on full display yesterday, when AFRM reported impressive results for 21Q3 (ended 3/31/21):
Gross Merchandise Volume (GMV): +83% YoY (vs. +77% in 2020)
Active Consumers: +60% YoY (vs. +92% in 2020)
Transactions per Active Consumer: +10% YoY (vs. +5% in 2020)
Revenue: +67% YoY(vs. +89% in 2020)
Despite topping sales growth expectations and raising guidance for the remainder of the 2021 fiscal year, AFRM shares are trading down -4% today after bouncing off an all-time low this morning. The reason? Affirm posted a record GAAP Operating Income loss, roughly -$169M for the quarter. Additionally, a few institutions drastically lowered their price targets this morning.