Shares in Affirm Holdings soared Tuesday after the consumer financing firm unveiled expanded ties to key customer Walmart. With Tuesday's gain, AFRM stock has jumped 421% in 2023.
Affirm is one of the biggest providers of buy now, pay later payment services. An online partner of Walmart since 2019, Affirm will now provide its BNPL services at self checkout kiosks at more than 4,500 U.S. Walmart stores.
Affirm's BNPL services were earlier available at Walmart Supercenters.
AFRM Stock: Holiday Shopping Boost?
The expanded Walmart deal follows media reports that consumer use of BNPL services has increased during the current holiday shopping season.
On the stock market today, AFRM stock jumped 15.5% to close at 50.46.
San Francisco-based Affirm gets most of its revenue from transaction fees paid by retailers. In addition, Affirm garners revenue from interest income paid by consumers.
Affirm stock had dived 82% in 2022. Affirm holds a Relative Strength Rating of 99 out of a best-possible 99, according to IBD Stock Checkup.
Morgan Stanley on Monday issued a report on AFRM stock that cautioned investors amid recent gains.
Morgan Stanley analyst James Faucette said Affirm stock's current valuation is vulnerable to potential consumer "customer quality deterioration."
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