Stock No. 2: Affirm (AFRM)
Click here to enter this stock into the Power Gauge right now.
of its merchandise volume in 2020 and 2021. That’s since plunged to less than 2%. Competition in the space is up, while borrower credit quality is down. It might be tempting to buy the stock today, since American consumers seem to want to keep spending even as the economy heads into a deeper recession. But according to the Power Gauge, this stock could soon be rated a “Sell” at every major bank and hedge fund… which means that this company could end up as one of the biggest losers in the coming months. If you own AFRM, know that the Power Gauge sees that it’s in murky water. Things might get better for the company eventually. But for now, this is a stock to watch… not load up on.
And you’ll see the rating is listed as NEUTRAL . Affirm is a popular choice for folks looking to buy all sorts of things they may not immediately have the cash for. It’s a digital payments platform that bet big on “buy now, pay later” loans. You may have seen Affirm as an option in an online checkout queue... at places from Home Depot to Walmart... Dyson vacuums to Adidas shoes... tickets from American Airlines to trinkets from Target. But it’s not working out perfectly, as the entire pay-later industry has come under criticism for getting consumers deeper in debt... And with losses mounting, the company is trudging through a challenging time. For example, one of its biggest sources of revenue in the past few years came from exercise- bike maker Peloton... making up nearly a quarter
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