Affirm Holdings, Inc. (AFRM): A Bull Case Theory

We came across a bullish thesis on Affirm Holdings, Inc. on ValueInvestorsClub.com by yxd0950. In this article, we will summarize the bulls’ thesis on AFRM. Affirm Holdings, Inc.’s share was trading at $68.06 as of June 27^th. AFRM’s forward P/E was 77.52 according to Yahoo Finance.

Affirm’s recent stock drop following its earnings release presents an attractive entry point into a dominant player in the growing Buy Now Pay Later (BNPL) space. The U.S. BNPL market, already at $109 billion in 2024, is projected to reach $184 billion by 2030, and Affirm is well-positioned to capitalize on this growth.

The company has innovated by enabling offline BNPL usage through its Debit+ card, which has seen GMV more than double YoY. It’s also pushing into new verticals such as B2B and professional services, where its “other” category recently grew 81%. Founded by PayPal co-founder Max Levchin and backed by elite VCs, Affirm’s transparency, flexible installment plans, and strong underwriting differentiate it from peers.

Notably, Affirm will begin reporting all loans to credit bureaus in 2025, helping responsible users build credit—a major brand advantage. Affirm’s technical superiority is evident in its ability to profitably underwrite long-duration, high-ticket loans and secure partnerships with Amazon, Apple, and Shopify.

While its recent 26% revenue growth forecast disappointed some, management emphasizes this is conservative, with upside potential from international expansion, Apple Pay integration, and B2B growth. CEO Levchin is confident in Affirm’s recession resilience, backed by its short loan cycles and dynamic credit controls, proven during past downturns.

Valued at under 5x sales with a 23% adjusted operating margin and manageable dilution, Affirm offers compelling risk/reward. For growth investors, the stock’s recent weakness could be a temporary dislocation, ahead of multiple catalysts like earnings beats, strategic partnerships, and further BNPL adoption.

Previously, we covered a bullish thesis on Block, Inc. by Long-Term Pick in March 2025, which highlighted strong growth across Square and Cash App, rising free cash flow, and strategic innovation. The company’s stock price has appreciated by approximately 2% since our coverage. The thesis still stands as Block continues to benefit from its expanding role in digital financial services. yxd0950 shares a similar view on Affirm Holdings but emphasizes its BNPL leadership, offline expansion, and underwriting strength.

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