The public finance company Affirm Holdings was welcomed generously by the market and its participants with a massive 98% increase to end its 1st trading day last January 13, 2021.
The company issued 24,600,000 shares of common stock at a price of $49 a share in its initial public offering. Affirm Holdings, Inc. (NASDAQ: AFRM) is coined to be the 1st major tech IPO of 2021. It opened at $100 per share and closed at $97.24 on its first day of being publicly traded. Affirm was founded in 2012 by Paypal Co-Founder, Max Levchin, and was able to raise around $1.5 billion dollars on the private market before going public. The company was reported to have raised $1.2 billion in its IPO, achieving a market cap of nearly $24 billion.
As a loan financing company, Affirm allows people to go online shopping, to purchase goods or even services online through the use of credit. The company allows the borrowers to pay the credit through fixed monthly payments with a tolerable interest. They offer hassle-free and quick financing without any hidden fees or complicated terms.
“There’s obviously a great demand for stocks from individuals who have been sitting around for a year, learning how to trade.– Many stocks are selling for these incredible prices but remember, when people get a little bored, they find something else to buy”. Aureus Asset Management’s CEO, Karen Firestone said that many stocks came down especially some of the popular companies, and the money that was supposed to be there, has gone and went into solar or tech companies. “We had a lot of growth stocks in 2020. We need to see what will happen with a broader market.” Firestone also said that the market today is not as narrow as it was before and accordingly, only the big large-cap growth names are doing better than the rest since very few stocks were outperforming the S&P 500 for the first half of the year.