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Affirm's Stock Surges After Apple Announces a Partnership in Payments

June 11, 2024
minute read

Shares of Affirm Holdings Inc. surged on Tuesday after the buy-now-pay-later payment service announced a partnership with Apple Inc.

Affirm’s stock (AFRM) jumped as much as 11.6% to an intraday high of $33.98 shortly after the market opened, before trimming some of those gains. By midday, it was still up 5%.

The boost came after Apple (AAPL) revealed that later this year, Affirm’s payment products would become available to Apple Pay users in the U.S.

"This integration will allow iPhone and iPad users checking out online or in-app with Apple Pay to choose to pay over time using Affirm," the company stated.

Affirm added that more details would be shared at a future date.

Despite the excitement, Affirm noted that it does not anticipate the partnership with Apple to significantly impact its revenue or gross merchandise volume for the fiscal year 2025, which ends next June.

However, Mizuho analyst Dan Dolev reaffirmed his long-standing buy rating on Affirm’s stock, highlighting the strategic advantage this partnership brings.

"The partnership is a major positive for Affirm, especially given the stock's previous downturns whenever Apple hinted at entering the buy-now-pay-later space," Dolev wrote in a client note. "In our view, Affirm’s strong brand and advanced underwriting technology create a competitive edge that Apple is unlikely to replicate."

The announcement negatively affected shares of Affirm’s competitors. PayPal Holdings Inc. (PYPL) saw its stock fall by 2.9% in midday trading, and Block Inc. (SQ) shares dropped 1.7%, heading towards a five-month low.

Even with Tuesday’s gains, Affirm’s stock has declined 35% year-to-date, in contrast to the S&P 500 index, which has risen 12.2%.

Bryan Curtis
Eric Ng
John Liu
Editorial Board
Bryan Curtis
Adan Harris
Managing Editor
Cathy Hills
Associate Editor

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