San Francisco based fintech company, Affirm Holdings has not been through any major development or turbulence, AFRM stock price tumbled though. Recently there was no specific news within the industry resulting in affecting the stock price. Yet given the extremely sensitive nature of fintech companies, AFRM stock being one of them, witnessed a drop in the wake of interest rate hikes in the future and possibility of a recession in near future.
AFRM Stock Movement on Chart
AFRM stock price registered its latest annual low of $11.94 on 9 November, this may act as support because price is moving towards this level. Traders drew the 0 level of Fib retracement at this 52 week low and next resistance stayed higher at $50 mark. Undoubtedly, asset prices are caught by sellers, in fact they have key selling zones at bearish trendlines. In addition, the Average Directional Index (ADX) is constantly decreasing lower and is reflecting weak strength in share price.
Currently it is trading at 15.12 USD following a drop of more than 12% in a day.
Government Data Impacting Stock Price
AFRM stock price is likely to have an impact after the recent retail and food sales data. On 16th November 2022, the United States Census Bureau released October’s advance monthly sales for retail and food services. The retail sales data turned out better than expected and this is primarily being interpreted as a negative factor. Simply because it was contradicting the recent reports indicating softer inflation.
Diversified Vision of Bulls and Bears
Investors are bullish on the lending company’s stock price as well as the management believes in long term growth. In 2019, the company reported a gross merchandise value (GMV) of 2.6 billion USD which is estimated to reach up to 20 billion USD by 2023. Revenue growth is expected to jump from 264 million USD to 1.6 billion USD.
The fintech company has helped in the growth of numerous e-commerce companies. Both merchants and consumers prefer Affirm over the other to expand its payment options and available financing options like credit cards, etc. Company is expected to witness more growth following the expansion in new territories, increasing offline reach and wide adoption.
While the bearish take on AFRM stock price is that despite the company’s growth the product remains underpriced. The company is suspected to lose money even after the adjusted profitability in the past couple of quarters.
Given the loss of bullish expectations from the company and bearish suspicion, nothing could be said clearly while looking at things in the short-term. The big picture around AFRM stock is likely to get cleared in the long term.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/11/17/afrm-stock-under-the-dilemma-of-bearish-plunge-or-bullish-jump/