When it comes to investing in fintech companies and the financing concept of BNPL — buy now, pay later — Affirm (AFRM) still comes to top of mind.

Plus, Affirm stock made more than a nifty comeback in 2023.

When interest rates jumped sharply since the spring of 2022, the fintech investing theme crumbled that year. Understandably, the broader stock market sell-off took AFRM stock down with it.

Yet in recent months, the stock has been on a superb run after bottoming out at 8.63. It briefly climbed above the 10-week moving average, another positive sign.

However, volatility has soared in Affirm stock following quarterly earnings results. Ahead of the Feb. 8 report, AFRM stock trimmed serious losses since Jan. 1 to turn in a fractional gain. And before a disappointing report on January consumer prices, shares aimed to climb again after rallying almost 7% last week.

Affirm shares, sinking nearly 13% in the week ended Feb. 16, is trying to regain its footing as long-term interest rates rose on the higher-than-expected inflation data. AFRM stock, trading near 37.35, is down 24% for the year.

The S&P 500 on Feb. 8 briefly crossed 5,000; the large-cap benchmark has now marked a gain of as much as 6% since Jan. 1.

So, amid the fresh pullback, is Affirm stock a buy now?

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The company went public in early 2021 at $49 a share.

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After a devastating drop of 95% from a November 2021 peak near 176, AFRM stock took quite a while to regain its footing.

By December 2022, shares slumped to as low as 8.62. But in 2023, shares proved they had bottomed out and finished the year at 49.14, a remarkable gain of 411%.

The S&P 500 rallied 24% last year, trailing a 43% leap by the Nasdaq composite. Both indexes got pounded in 2022 as the Federal Reserve lifted interest rates dramatically in a hurried campaign to cool down inflation.

Affirm Stock Today: Wild Action After Fiscal Q2 Results

Affirm traded in hyper-volatile fashion after reporting December-quarter results after the close Thursday. The company’s net loss in the fiscal second quarter of 54 cents a share came in much smaller than thought. Sales of $591.1 million grew sharply, up 48% vs. a year earlier.

According to Yahoo Finance, analysts on consensus saw a net loss of 72 cents per share, lower than the $1.10 Affirm lost a year earlier. They viewed sales rising 30% to $520.9 million.

Among the 12 analysts polled, the bottom line estimates ranged from a net loss of 63 cents to a net loss of 86 cents. Top-line views extend from as low as $509.4 million to as high as $540.9 million.

In a letter to shareholders, the company noted a smaller operating loss at -$172 million, while adjusted operating income of $93 million grew $155 million vs. a year earlier.

Total gross merchandise volume (GMV) rose 32% year over year to $7.5 billion. The company has boosted its fiscal 2024 GMV guidance by $1 billion to $25.25 billion, but some analysts reportedly noted in a MarketWatch story that some investors wanted to see a larger revision upward.

“This time last year, we reiterated our commitment to building operating leverage without sacrificing credit performance, volume growth, or innovation,” CEO Max Levchin said in the shareholder letter. “The market wasn’t exactly convinced then, but 12 months later, we have done exactly what we said we would.”

The company saw active Affirm Card consumers exceed 700,000 at the end of the quarter and enjoyed $400 million in GMV on its Affirm Card product. The company has also topped 1 million merchant locations served since the card’s launch.

Earnings Estimates Get A Boost

Analysts surveyed have sharply boosted their earnings forecasts. They currently see the company earning a profit of 71 cents a share in the fiscal year that ends in June 2024, a large upward revision. Plus, they also expect earnings to grow 33% to 94 cents in fiscal 2025.

These forecasts compare so much favorably vs. net losses of $1.75 a share in fiscal 2021, $2.51 in fiscal 2022, and a record net loss of $3.34 in the fiscal 2023 ended last June.