Affirm (AFRM) Soars 11.8% on Amazon Contract Renewal

We recently published 10 Stocks Shining Bright Amid Wall Street’s Dull Spell. Affirm Holdings Inc. (NASDAQ:AFRM) is one of the top performers on Tuesday.

Affirm Holdings snapped a three-day losing streak on Tuesday, jumping 11.77 percent to close at $73.39 apiece as investors cheered news that it successfully renewed its partnership with e-commerce giant Amazon Inc.

According to the company, it was able to renew its contract with Amazon for another five years until January 2031, largely on terms in line with the current program.

Affirm (AFRM) Soars 11.8% on Amazon Contract Renewal

Affirm Holdings Inc. (NASDAQ:AFRM) started its partnership with Amazon in August 2021, where it was tapped to provide flexible payment solutions to the e-commerce giant’s customers.

Following the news, Affirm Holdings Inc. (NASDAQ:AFRM) reaffirmed its “outperform” rating from investment firm Evercore ISI, alongside a price target of $95. The figure marked a 29 percent upside potential from its latest closing price.

According to Evercore ISI, its coverage reflected expectations that international volume growth would significantly benefit the company in 2027 and beyond.

Founded in 2012, Affirm Holdings Inc. (NASDAQ:AFRM) is a company offering installment payment solutions as well as a Buy Now, Pay Later scheme.

In the first quarter of fiscal year 2026, the company swung to a net income of $80.69 million from a $100 million net loss in the same period last year.

Total revenues surged by 33.7 percent to $933 million from $698 million year-on-year.

While we acknowledge the risk and potential of AFRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AFRM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.