But while it faces competition, has sales concentrated in a small number of merchants, and hasn't turned a profit, I would recommend sitting this one out and keeping an eye on the company as it grows into its business. On Jan. 11, Affirm filed an S-1/A to increase the IPO’s price range by 20 percent to $41 to $44, up from $33 to $38, on the same number of shares – 24.6 million shares. Sign up for free newsletters and get more CNBC delivered to your inbox. Shares priced at $49. Returnly serves more … Affirm, founded by PayPal co-founder Max Levchin, had planned to sell 24.6 million shares at a target price range of between $41 and $44 each. The IPO, the largest U.S. listing so far in 2021, signals that investor appetite for new stocks remains robust following a stellar 2020, which was the strongest IPO market in two decades. It offers installments for expensive purchases, some of which come with interest payments and some of which don't. In a case study, Christopher Kae, head of Americas for high-end watch maker Chrono24, said, "We now see more millennial potential luxury buyers engaging with our products via Affirm.". This is our initial public offering, and no public market currently exists for our Class A common stock. There are other players in the field as well, such as PayPal's recently launched buy-now-pay-later feature, and Afterpay. Affirm Holdings, a U.S. provider of installment loans to online shoppers, said it sold shares in its initial public offering at $49 apiece to raise $1.2 billion. Affirm Holdings, Inc. has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a much-anticipated initial public offering (IPO) … Payments company Affirm filed its IPO prospectus with the Securities and Exchange Commission on Wednesday, and plans to list on the Nasdaq under the symbol "AFRM.". After a year of headline-grabbing initial public offerings in 2020, Affirm Holdings (NASDAQ:AFRM) is the first hot IPO of 2021. Affirm Holdings, Inc. is offering shares of Class A common stock. FinTech IPOs are becoming the norm with e-commerce and online payments booming from Covid-led consumer online demand. Got a confidential news tip? The initial public offering price of the Class A common stock is expected to be between $ and $ per share. The financial technology company, or … Affirm Holdings, Inc. Was founded in 2012 by Max Levchin and Peter Thiel, who at that time already showed their management skills in PayPal. Back in July, The Wall Street Journal, which broke the news of Affirm’s plans for an IPO, estimated valuation at $5 billion to $10 billion. Offers "buy now pay later" loans for online purchases. Analysts thought the offering would come sometime in December alongside unicorn Airbnb. Affirm intends to offer 24.6 million shares through the IPO, priced at $33 to $38 a share. Ten top merchants account for 37% of Affirm's total revenue, which means a huge percentage of its eggs are in one basket. But its main source of revenue is Peloton Interactive, which accounted for 28% of total revenue in the fiscal year that ended June 30 and even more in the quarter that ended Sept. 30. Returns as of 04/25/2021. That's in testing right now, but should eventually be another large source of revenue. Affirm Holdings posted significant earnings growth ahead of the IPO. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. We’re motley! Levchin founded Affirm in 2012 to offer easily accessible financing targeted at mostly young online shoppers, who pay back in monthly installments. Affirm Holdings, Inc. operates platform for digital and mobile-first commerce. © 2021 CNBC LLC. After a year of headline-grabbing initial public offerings in 2020, Affirm Holdings (NASDAQ: AFRM) is the first hot IPO of 2021. Cumulative Growth of a $10,000 Investment in Stock Advisor, Is Hot IPO Affirm Holdings Worth Its High Price? We are building the next generation platform for digital and mobile-first commerce. Under the terms of the agreement, Affirm … The company is engaged in personal installment loans for online purchases. Dec 15, 2020 San Francisco, California-based Affirm was founded to improve the transparency of payment card transactions while adding value to merchants using a … In 2019, the earnings amounted to $264.40M, while in FY 2020, which ended on June 30, it almost … But is this just IPO hype, or is it worth the high price? We want to hear from you. However, the Affirm IPO date was January 13, 2021. The … Its net losses narrowed to $15.3 million compared with $30.7 million. Affirm, whose founders include PayPal co-founder Max Levchin, sees its function as liberating buyers from the unclear terms and fees of traditional creditors by being transparent, flexible, and fair. Affirm has yet to turn a profit, but it sees a path toward profitability as it builds its ecosystem. Affirm Holdings Priced, Nasdaq: AFRM. Affirm filed its IPO documents with the Securities and Exchange Commission in November. Besides Levchin, Affirm's major investors include Peter Thiel's Founders Fund, venture capital firms Khosla Ventures and Lightspeed Venture Funds, and Canadian e-commerce firm Shopify. Customers can't make certain purchases if they require a high upfront payment or potential long-term interest. Revenue grew 93% year over year in fiscal 2020, with a $509 million total. Stock Advisor launched in February of 2002. Affirm Holdings Inc. has entered into a definitive agreement to acquire Returnly, which provides online return experiences and post-purchase payments. Affirm Holdings is the latest hot FinTech IPO company. This particularly appeals to a younger generation that's used to digital processes. San Francisco-based Affirm Holdings, Inc. (Affirm) filed for its IPO. Gross payment volume also nearly doubled during the same time period. The company offers consumers the option to pay for purchases in installments, rather than all at once. Affirm is working on differentiating itself through more and better features as well as partnerships. Affirm Holdings (NASDAQ:AFRM) has been an early 2021 IPO dud, with a first-day closing price of $97 that’s lost almost 30% of its value since then.. She has now turned her focus to helping investors lead happier and richer lives at The Motley Fool. It also offers savings accounts with higher-than-average interest rates. Affirm now has partnerships with 6,500 stores, including Walmart, Target, Best Buy, and Expedia.Some of its new partners are Karisma luxury hotels and upscale retailer Neiman Marcus. Founded by PayPal's co-founder Max Levchin, Affirm Holdings (AFRM) raised IPO price range to issue 24.6M shares from $33-$38 to $41-$44 per … Affirm's stock has already gained 32% since it first became available to retail investors on Jan. 13. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Affirm ultimately listed its shares at $49 under the ticker AFRM, but by mid-day shares were trading at over $100—a more than 100% increase. Affirm Holdings Inc., which provides installment loans to online shoppers, priced its U.S. initial public offering above its marketed range to raise $1.2 billion. Affirm Holdings, a U.S. provider of installment loans to online shoppers, said on Wednesday it sold shares in its initial public offering (IPO) at $49 apiece, above its target range, to raise $1.2 billion. Based on Affirm’s IPO filings, and adding in some of his own assumptions, Kulkarni estimates that more than 60% of Peloton’s connected-fitness … Affirm's services help stores make more sales, and they help customers with the ability to afford purchases more easily. Affirm’s most recent valuation is not known. Affirm sees this as a win-win for merchants and shoppers. Jennifer grew up in New York and parlayed her finance and public administration degrees into helping good causes with non-profit work. Affirm makes money from customer interest payments as well as store processing fees. The company would raise $934.8 million at the high end of that range. Affirm Holdings is led by PayPal co-founder Max Levchin. Customers can choose Affirm as a payment option when shopping on a partner site and then see a range of payment alternatives, such as three-month or six-month installments, and choose the one that works for them. It's committed to innovation and expanding in different ways. The company also offers a virtual card that customers can use in storefronts, and that accounts for about 10% of total revenue, or $3.6 million in the third quarter. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Affirm Holdings, a U.S. provider of installment loans to online shoppers, said it sold shares in its initial public offering at $49 apiece to raise $1.2 billion. Affirm IPO Details: Date, Price and Ticker Symbol. A Division of NBCUniversal. Merchants sometimes miss out on sales when customers can't pay up front or customers are unclear about total interest payments. As more customers purchase, more merchants join, reaching more customers, with Affirm getting paid from both sides. The financial technology company, or fintech, provides easy payment solutions for shoppers; its buy-now-pay-later options make big purchases more affordable, and it does this without imposing late fees. Some of the company’s backers include Singapore’s GIC Private Limited. The technology is easily integrated into a partner company's payment platform, but users can also shop at non-partner shops with a one-time card number. After a year of headline-grabbing initial public offerings in 2020, Affirm Holdings (NASDAQ:AFRM) is the first hot IPO of 2021. Morgan Stanley, Goldman Sachs and Allen & Co are the lead underwriters for Affirm's offering. Affirm Holdings (AFRM) plans to raise $873 million in an initial public offering (IPO) on Wednesday, January 13th, IPO Scoop reports. Affirm Holdings (NASDAQ:AFRM) has been an early 2021 IPO dud, with a first-day closing price of $97 that's lost almost 30% of its value since then. That was a stronger start than Coinbase had. The company had upsized the share offering from a range of $33 to $38 per share on Monday. Its system enables consumers to get items today, but pay over time. Return from IPO: +34.7%. Net loss for the latest quarter came in at $15 million, about half what it was the same period the year before, but the company says that it expects future losses. Affirm Holdings. But it does look like Affirm will expand both its network of merchants and consumer base. The connection with Peloton been great over the past year, as lockdowns have meant a turn toward home fitness, and Peloton's sales increased 232% in the latest quarter.The connected fitness company offers Affirm's 0% APR financing as an option for installment payment plans, and Affirm accounts for the majority of monthly online business sales. Affirm Holdings (NASDAQ:AFRM) inks an agreement to acquire Returnly, a leader in online return experiences and post-purchase payments. Founded in 2012, the company operates as a financial lender of installment loans for consumers to use at the point of sale to finance a purchase. Affirm filed to go public on November 18, 2020. They became masterminds of new approaches to the assessment of the lendee’s reliability and credibility. Affirm specializes in "buy now pay later" solutions. Affirm Holdings' (NASDAQ: AFRM) shares opened more than 85% higher than its IPO price on its first day of trading on Jan. 13, 2021. As the cycle increases, Affirm gets more data and can offer improved options. Its revenue is strongly tied to Peloton's in the short term, and the company pointed out that if the home fitness trend slows down, or one of its strong partners chooses to work with a competitor, that could adversely affect sales. Latest Trade: $66.02 0.00 (0.0%) First Day Return: +98.4%. The opening day pop is reminiscent of Airbnb's IPO … Data is a real-time snapshot *Data is delayed at least 15 minutes. The company generated revenue of $174 million in three months ended September 2020, up 98% from the previous year. As of June 2020, Affirm had $1.1 billion in debt. All Rights Reserved. Affirm Holdings (NASDAQ:AFRM) is taking on credit card companies by making the payment process more transparent, flexible, and forgiving, and … Affirm is a growing company that offers opportunity for shareholders as sales climb. Affirm said it offered 24.6 million shares of its Class A common stock, and that shares are due to begin trading on the Nasdaq later in the day under the symbol "AFRM.". The IPO’s initial estimated proceeds were $873.3 million.) Market data powered by FactSet and Web Financial Group. Get this delivered to your inbox, and more info about our products and services. (December 2020) Affirm, legally Affirm Holdings, Inc. is a publicly traded financial technology company headquartered in San Francisco, United States. @themotleyfool #stocks $AFRM $WMT $TGT $BBY $EXPE $SHOP $PYPL $PTON, Why Affirm Holdings Stock Lost 24% Last Month, Here's Why Affirm Is Falling After Its First Earnings Report, Copyright, Trademark and Patent Information. It offers integrated checkout, virtual card, split pay, Affirm app and marketplace, and savings account. Notably, it recently announced a partnership with Shopify to be the e-commerce company's exclusive installment plan option. This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. It approves about 20% more transactions than competitors since it can assess risk better through its data collection. To helping investors lead happier and richer lives at the high end of that range PayPal co-founder Levchin. 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