Affirm: Buying Growth
- Affirm announced an exclusive deal with Amazon lasting just 13 months at the cost of 22 million shares.
- The BNPL provider forecasts massive 13% operating margin losses this year before factoring in the $2+ billion in-effect marketing cost for the Amazon deal.
- The stock now trades at an absurd $53 billion market cap which is ~90x FY22 net revenues.
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-Affirm Holdings (NASDAQ:AFRM) stock dips 4.2% after Dolev reduces its price target to $140 from $180. That's based on reducing his base case multiple to 26x from 32x. "The multiple reduction better reflects potential market risks Affirm (AFRM) faces despite having significant GMV upside potential from the Amazon (NASDAQ:AMZN) opportunity, in our view," Dolev said.