Affirm Holdings (NASDAQ:AFRM) was one of the big winners last year. The stock price rose from lows of $46.50 to highs of $176 after Amazon news and strong growth foresights. Towards the end of the year, the price fell off along with other growth names who sought more safety in value areas of the market. With the AFRM stock now putting in some higher lows before earnings, what is in store for the near future?
Earnings for Affirm Holdings are due on February 10th. Wall Street expects a year-over-year increase in earnings on higher revenues. This may help the stock gather momentum for a move up if the key numbers are better than expected. Managements outlook for the company will be vital too.
Revenues are expected to be $330.05M, up 61.8% from the correlating previous quarter.
Morgan Stanley said they “continue to see meaningful upside potential to AFRM results… There was some investor concern around rising 30+ day delinquency rates… but overall rate appears to be tracking within managements target.”
They reiterated a $140 target.
The first area for the AFRM stock to target will be a reclaim of the 200-day MA. A strong move above this would see banks buy back into the stock given the bullish sentiment it would create. This is currently at $91. Yesterdays closing price was $65.25.
This would also bring the price towards the area which first saw large volume following on from Affirm’s Amazon agreement.
The next area is around $110. This was the next area that was heavily traded following Q2 2021 earnings release.
Much depends on earnings and forecasts from the company. We aren’t in the habit of trying to guess. However, Wall Street estimates are good, so this could be the fuel needed to change the sentiment for this growth stock.