Confirm SoFi stocks will burst after the gains
Shares in fintech companies Affirm and SoFi rose Thursday after both companies released their latest quarterly results
Affirm shares rose more than 13% Thursday after the purchase, and the company later paid $ 269.4 million in revenue, beating a refinitive estimate of $ 248.2 million. Affirm also reported quarterly loss per share of $ 1.13.
The company’s stock rose up to 30% after business hours on Wednesday after Affirm announced it was expanding its partnership with Amazon. Under the agreement, Affirm will be the only third-party Amazon retailer nationwide to offer the “Buy Now, Pay Later” option, although credit card companies will be able to offer the “Buy Now, Pay Later” option in the future. The company also saw active consumers grow 124% to 8.7 million.
“BNPL has arrived in the sense that half of Americans are aware of it and are considering using or using it,” CEO Max Levchin told CNBC’s TechCheck on Thursday, referring to “Buy Now, Later.” pay”. “It’s not just for this demographic or anything anymore. It’s both Gen Z and Gen X and everyone in between.”
SoFi stocks also gained more than 16% after the digital bank reported better-than-expected quarterly results on Wednesday evening. SoFi reported a loss of 5 cents per share in the third quarter, exceeding the refinitive forecast of 14 cents per share. Revenue also surpassed Wall Street’s estimates of $ 251.6 million and came in at $ 277.2 million.
The company’s diversified business model, which deals with credit, investing and a range of financial services that benefit from home and opening environments, has enabled it to outperform revenues, CEO Anthony Noto told Squawk Box on Thursday “from CNBC.
“We’re the only one-stop-shop for digital financial services so we can meet members when needed,” he said.
The total number of SoFi products has also more than doubled compared to the previous year to 4.3 million, while the members have increased compared to the previous quarter.
Jefferies’ analysts maintained a buy rating on SoFi and raised their price target to $ 26 on the stock as the company increased its revenue outlook for the current quarter and continued growth.
“We will continue to follow the pace of new customer growth and momentum in the financial Svcs segment, and Galileo, which we believe is a unique selling point for the company as it continues to scale,” wrote the Jefferies analysts.
Galileo is a financial services and payments platform that the company acquired in 2020.
Correction: Updated to reflect the correct spelling of Jefferies.