Affirm Holdings, Inc. (AFRM – Free Report) , known for its dedication to seamless and flexible payment options, recently announced a strategic partnership with Stride Bank. Under this partnership, Stride Bank will become a new card-issuing partner for the Affirm Card, which will boost Affirm’s ability to provide more innovative financial products to consumers nationwide.
The partnership between Affirm and Stride Bank is a perfect case of an emerging trend in the financial sector, where traditional banks are partnering with fintechs to enhance their digital lending services. Affirm is bringing its expertise in point-of-sale financing to the deal, which ideally complements Stride Bank’s vision of extending financial inclusion. The partnership seeks to simplify installment-based buying for more customers.
With this partnership, consumers can expect improved access to responsible lending products, as they can keep their finances in order without getting stuck in the vicious cycle of high-interest credit card debt. Affirm’s no-late-fee policy and transparent pricing style align with today’s movement toward fairer credit products.
This partnership is a game changer, as it will benefit both companies and use each other’s strategic advantages. It will attract Affirm’s large network of more than 21 million active users and 330,000 merchants and Stride Bank’s solid banking infrastructure that meets all regulatory standards. Their main customers can be youngsters and budget-conscious shoppers.
AFRM Stock Price Performance
Over the past year, AFRM shares have rallied 40.4%, outperforming the industry’s growth of 9.9%.
Image Source: Zacks Investment Research
AFRM’s Zacks Rank & Key Picks
AFRM currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the internet – software space are CLEAR Secure, Inc. (YOU – Free Report) , Reddit Inc. (RDDT – Free Report) and Olo Inc. (OLO – Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CLEAR Secure’s current-year earnings of $1.36 per share has witnessed one upward revision in the past 60 days against one movement in the opposite direction. YOU beat earnings estimates in three of the trailing four quarters, with the average surprise being 77%. The consensus estimate for current-year revenues is pegged at $883.34 million, implying 14.7% year-over-year growth.
The Zacks Consensus Estimate for Reddit’s current-year earnings of $1.16 per share has witnessed nine upward revisions in the past 60 days against none in the opposite direction. RDDT beat earnings estimates in each of the trailing four quarters, with the average surprise being 194.1%. The consensus estimate for current-year revenues is pegged at $1.8 billion, implying 40.4% year-over-year growth.
The Zacks Consensus Estimate for Olo’s current-year earnings of 31 cents per share has witnessed three upward revisions in the past 60 days against none in the opposite direction. OLO beat earnings estimates in three of the trailing four quarters, with the average surprise being 1.4%. The consensus estimate for current-year revenues is pegged at $334.7 million, implying 17.5% year-over-year growth.
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