Is AFRM a good stock to buy? We came across a bullish thesis on Affirm Holdings, Inc. on r/investing_discussion by Variant_Invest. In this article, we will summarize the bulls’ thesis on AFRM. Affirm Holdings, Inc.’s share was trading at $65.11 as of June 9th. AFRM’s trailing and forward P/E were 59.22 and 32.57 respectively according to Yahoo Finance.
Affirm Holdings, Inc. (AFRM) is increasingly positioning itself as a scaled payments and commerce infrastructure platform rather than a speculative buy now, pay later lender. The company has continued to strengthen its merchant ecosystem through a long-term extension with Amazon, a renewed partnership with Shopify, and new enterprise relationships with Apple and Costco. These partnerships challenge the longstanding bear thesis centered around merchant concentration risk, as Affirm is no longer reliant on a narrow set of partners or discretionary consumer spending categories.
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The addition of Costco and Apple is particularly notable because both companies operate highly trusted ecosystems and cater to broad, financially stable customer bases, suggesting that Affirm’s platform has evolved beyond the perception of being tied primarily to high-APR impulse purchases. The company’s growing scale is also improving its competitive positioning through better underwriting capabilities.
As Affirm becomes more deeply integrated into merchant checkout systems, it gains access to transaction-level data that enhances risk assessment and loan performance over time. This creates a compounding advantage, as stronger underwriting can lower loss rates and improve unit economics, while years of accumulated transaction data become increasingly difficult for newer competitors to replicate.
Despite these developments, the stock continues to trade more like a volatile fintech company than a strategic payments platform with meaningful switching costs and enterprise-grade partnerships. The disconnect between market perception and the company’s evolving business model creates a potentially attractive long-term setup, particularly for investors with a multi-year investment horizon who believe Affirm can continue expanding its role within digital commerce and embedded payments infrastructure.
Previously, we covered a bullish thesis on Block, Inc. by Long-Term Pick in February 2025, which highlighted the company’s expanding fintech ecosystem, improving profitability, strong free cash flow generation, and growth across Square and Cash App. XYZ’s stock price has appreciated by approximately 4.57% since our coverage. Variant_Invest shares a similar view but emphasizes on Affirm’s merchant diversification, enterprise partnerships, and data-driven underwriting advantages within digital payments infrastructure.
Affirm Holdings, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held AFRM at the end of the first quarter which was 63 in the previous quarter. 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.
Disclosure: None.
