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Affirm holding stock price closed at $22.47 with a loss of 0.04% during the last intraday session. - 2
AFRM stock is printing bullish candles from the last eight trading days after strong quarter 4 results. - 3
Affirm Holdings has recently expanded its partnership with Amazon.
Affirm holding (AFRM) stock has been in a strong uptrend since the start of May and the quarter 4 result release fueled up the bullish momentum. The stock price surged from the low of $9 and faced rejection twice from the resistance level of $19.70.
AFRM stock price retraced and formed support at $13.70. The release of the fourth-quarter report reignited the bullish momentum in the stock price. Affirm stock price has been printing a bullish candle for 8 days and is on a winning streak.
However, the last candle closed as a weak bullish candle, which indicates that the bears have started to enter the market.
If the next candle can break the high of the last candle, the stock price might head toward the next resistance level of $24. While, if the price can break and close below $21.50, AFRM stock might retest $19.70 and potentially form support to rise further.
Buy Now Pay Later – Affirm Holdings Rapid Growth
The stock price has shot up more than 60% in the days following its report. The company was successful in beating the fourth quarter analysts estimates and guided growth in quarter 1 of 2024.
In Q4, the company reported a net revenue of $446 Billion, increased 22% year-over-year, and gross merchandise volume of $5.5 Billion, up 25% year-over-year. For Affirm Holding’s first quarter (ending 30 September), the company has projected revenue between $430 Million and $455 Million, a notch above consensus estimate of $429.9 Million.
Affirm became the first BNPL company that partnered with Amazon Pay and became a part of the payment option through the retail giant.
The buy now, pay later company can feel a squeeze if the economy were to slow down, as it could result in less spending and higher defaults. The tighter lending standards seem to be working for Affirm Holding so far.
Will AFRM Stock Continue Rising?
The stock price has jumped above all the major exponential moving averages, indicating bullish momentum. Chaikin money flow score has surged significantly since 11 August to 0.4, indicating strong strength and capital inflow in the market.
The relative strength index has entered into an overbought zone and stands at 76.02, indicating chances of short-term pullback and reversal. AFRM stock price might consolidate before making any major moves.
Conclusion
Investors should also consider the fact that Affirm continues to lose money and its fourth-quarter net loss was $206 Million, up from $186 Million last year. During 2023, it lost $985 million, which increased from $707 Million in the previous year. However, growth still remains solid for Affirm Holdings.
Technical levels
Support levels: $19.70 and $13.70
Resistance levels: $24 and $27
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/09/10/affirm-holdings-afrm-stock-surges-almost-65-after-q4-results/