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Affirm’s Q1 Earnings Propel Stock as Price Target Increases

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 11/8/2025, 8:20 am ET 11/8/2025, 8:20 am ET | 5 min 5 min read
Affirm’s Q1 Earnings Propel Stock as Price Target Increases Thumbnail

Affirm Holdings Inc. stocks have been trading up by 12.2 percent following strong investor confidence after a positive earnings report.

Finance industry expert:

Analyst sentiment – positive

Market Position & Fundamentals: Affirm Holdings (AFRM) displays a unique market position characterized by strong revenue growth, but its profitability ratios reveal concerning inconsistencies. With a robust revenue of $3.22 billion and a revenue growth rate of 33.69% over three years, Affirm continues to scale its topline effectively. However, profitability metrics such as an EBIT margin of 10.8% and a negative pre-tax profit margin of -28.2% highlight challenges in cost management. Despite a high gross margin of 100%, which indicates efficiency in product pricing compared to production costs, the company struggles to translate this into net profitability due to elevated operating expenses and significant interest obligations. The current Price-to-Earnings (P/E) ratio of 549.67 reflects high market expectations relative to current earnings, suggesting the stock may be overvalued compared to earnings performance.

Technical Analysis & Trading Strategy: Reviewing Affirm’s weekly price patterns, the stock has demonstrated a predominantly upward momentum, with the closing price rising from 72.1 to 74.01 in the observed period. Recent price action indicates bullish sentiment, supported by steadily increasing highs and higher lows. The 5-minute candle analysis additionally shows strong upward movement post-market opens. Trading volumes suggest sustained interest at these prices. A strategic position would involve purchasing near the 72.97 support level, with tight stop-loss orders to protect against volatility. Given the prevailing trend and volume patterns, targeting a resistance breakout above 74.28 could yield favorable short-term gains.

Catalysts & Outlook: Affirm Holdings is buoyed by significant catalysts, including the expansion of a long-term capital deal with New York Life, enabling offloading of up to $750 million in installment loans, thus enhancing liquidity and supporting a substantial consumer loan volume. Recent results showcase a substantial Q1 turnaround with an EPS of $0.23 compared to a prior loss, coupled with revenue surpassing estimates at $933 million. Affirm’s strategic collaboration with major players like Amazon further strengthens its market position. Technical resistance is near 98, with strong support around 70. Affirm is positioned favorably within the financial services sector, with performance exceeding benchmarks due to strategic partnerships and financial improvements, supporting a positive outlook.

Candlestick Chart

Weekly Update Nov 03 – Nov 07, 2025: On Saturday, November 08, 2025 Affirm Holdings Inc. stock [NASDAQ: AFRM] is trending up by 12.2%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Affirm’s latest earnings report indicates a turnaround story, with a profitable fiscal Q1 that defied prior year losses. Earnings per share reached $0.23, swinging from a previous loss of $0.31, while revenue soared by 34% to $933.3 million, a solid beat over expected figures. This growth was fueled primarily by an impressive 42% surge in Gross Merchandise Value, reaching $10.8 billion, and an enhanced operating margin of 28%. Profits from operations further bolstered this sunny picture, as operating income flipped positive to $64 million. Such robust performance highlights Affirm’s ability to capitalize on consumer demand effectively.

More Breaking News

Compounding this good news, the company has issued optimistic forward guidance for Q2, anticipating revenue between $1.03 billion and $1.06 billion, which aligns nicely with market consensus. This projection is reflective of continued growth and a meticulous grasp on handling consumer finance needs through flexible installment payments. Affirm’s healthy financial metrics, like a total debt to equity of just 0.9 and a comfortable current ratio of 4.8, testify to its robust fiscal health and effective risk management, ensuring both liquidity and fiscal sustainability.

Conclusion

Affirm appears set on a healthy growth trajectory as financial strategies continue to pay off. With strong earnings performance, confident forward guidance, and strategic partnerships that strengthen its service offerings, investor confidence looks well-founded. Expansion into high-volume consumer loans with partners like New York Life further assures that the firm is committed to sustainable and lucrative growth. The increased price targets from notable financial institutions underscore Affirm’s improved standing and burgeoning future prospects. As millionaire penny stock trader and teacher Tim Sykes says, “Be patient, don’t force trades, and let the perfect setups come to you.” Traders are well-advised to closely monitor Affirm’s market maneuvers, particularly as it continues carving out space in the evolving financial technologies sector.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”