Affirm (AFRM) Stock Is Slipping Away On Loans Return: Should You Buy?

According to research firm Kaleido Intelligence, the number of people who use buy now, pay later will grow at a 27% annual clip through 2025. This method of payment will account for $258 billion worth of purchases by 2025. AFRM stock is trading at $150.97 today in the pre-market. This growth, however, may not be fully reflected in the company’s future results. For instance, its customers are struggling to pay back their debts.

Affirm is a platform that connects users with other loan providers. It works by allowing users to borrow from banks and other financial institutions. It had about $2 billion in its internal loan portfolio. During the middle of 2020, millions of customers of Affirm had to cope with unpaid bills due to the global pandemic. The company’s loan-loss provisions almost doubled during the third quarter of that year before being dialed back. Even as the economy seems to be getting better, Affirm’s loan loss provisions rose.

Anthony Gonzales

Biotech, Tech, and Crypto reporterAnthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.