Affirm Holdings Stock Dives Despite Q3 Report Of In-Line Revenues, Guidance Raise: Why Analyst Says There Is No Positive Catalyst

Affirm Holdings Inc (NASDAQ:AFRM) shares tanked in early trading on Friday, even after the company on Thursday reported broadly in-line fiscal third-quarter results.

The company's margins came in better than expected, driven by good expense discipline, according to Needham.

The Affirm Holdings Analyst: Analyst Kyle Peterson maintained a Hold rating on the stock.

The Affirm Holdings Thesis: The company reported its quarterly GMV (gross merchandise value) at $8.6 billion, up 36.5% and better than the consensus of $8.2 billion, Peterson said in the note.

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Affirm's revenue of $783.1 million, up 35.9%, came in line with consensus, he added.

"While both merchant and card network revenue came in above our estimates, interest income and gain on sale revenue were weaker than our projections," the analyst wrote.

AFRM raised its fiscal fourth-quarter GMV and revenue outlook from $9-$9.3 billion to $9.4-$9.7 billion and from $810-$840 million to $815-$845 million, respectively, "to reflect good execution and impressive growth through the month of April," he further stated.

Peterson noted that there is no positive catalyst for the stock in the near term due to "increased recessionary fears."

AFRM Price Action: Shares of Affirm Holdings had declined by 13.71% to $46.82 at the time of publication on Friday.

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