Affirm, a leader in the Buy Now, Pay Later (BNPL) space, has recently experienced a remarkable surge in its stock price, jumping over 20% following the release of strong earnings for Q2 of its 2025 fiscal year. The company reported a 47% revenue growth and a 35% increase in gross merchandise volume, showcasing its robust business model and growing network effect as it partners with major merchants like Amazon and Apple. With a solid balance sheet boasting $1.8 billion in cash and a significant increase in lending capacity, Affirm is proving its sustainability in a competitive market. Despite concerns over volatility, the company’s impressive growth trajectory positions it as a potential long-term investment. Investors are encouraged to consider buying shares gradually, taking advantage of potential price fluctuations. CEO Max Levchin envisions Affirm as a diversified financial powerhouse akin to American Express, making it a compelling option for growth-focused investors.
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