Shares of Affirm Holdings Inc (NASDAQ: AFRM) are down 75% this year but CEO Max Levchin continues to be confident about the “fundamentals” of the company.
Affirm is doing extraordinarily well
Despite the sharp sell-off, Levchin doesn’t see the need for job cuts to lower costs since financially, the company is “doing great”. On CNBC’s “TechCheck”, the chief executive said:
Business is doing extraordinarily well. We’ve posted our 5th beat quarter. We’ve announced a clear date for profitability. We’re still growing in triple digits in all categories that matter to us. So, the market will have to sort itself out over time.
Last month, AFRM reported market-beating results for its fiscal Q1 and raised guidance for the full year. Wall Street, on average, sees a 60% upside in the stock from here.
Affirm Holdings can handle competition
On Monday, Apple Inc launched its own “buy now, pay later” program. Despite rising competition, CEO Levchin is convinced that Affirm can hold its own. Explaining why, he said:
Affirm is different. We improve consumers’ spending power but only with the ability to get repaid. We’ve been building technology and data; been really careful about our partnerships. We charge both consumers and merchants to build a sustainable business.
The San Francisco-headquartered fintech doesn’t charge a late fee or resort to deferred interest, which also makes it “unique” in the BNPL space, the chief executive concluded.
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