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How to buy Affirm (AFRM) stock

Here's everything we know so far about the Affirm IPO.

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Popular "buy now, pay later" installment loans provider Affirm completed its initial public offering on Wednesday, January 13. The stock trades on the Nasdaq under "AFRM."

Latest updates

Wednesday, January 13: Affirm wrapped its IPO at $49 per share, up from the previously upsized range of $41 to $44 per share, raising $1.2 billion for the company. Shares of “AFRM” opened at $90.90 and skyrocketed to $103 per share during its first trading day.

Monday, January 11: Affirm increased its price range for its IPO to $41 to $44 per share, meaning the company stands to raise more than $1 billion in the offering. The deal is expected to close on Tuesday, January 12 and the company’s stock will trade on the Nasdaq under the ticker symbol “AFRM” on Wednesday, January 13.

Tuesday, January 5: Affirm announced that it intends to offer 24.6 million shares at a range of between $33 and $38 per share.

Tuesday, December 15: Affirm announced that it has postponed its IPO until January 2021 at the earliest. Sources close to the company reported that a flood of IPOs in December 2020 may have driven this decision.

Wednesday, November 18: Affirm filed with the SEC to go public on the Nasdaq under the ticker AFRM.

Friday, November 13: According to a Bloomberg report, Affirm could make its filing public as early as next week.

What we know about the Affirm IPO

The fintech pay-later platform Affirm wrapped its initial public offering, selling 24.6 million shares at $49 per share, raising over $1.2 billion and giving the company a market capitalization of $11.9 billion. The stock began trading on the Nasdaq under the ticker symbol "AFRM," opening at $90.90 per share, jumping to $103 per share during the first trading day.

Morgan Stanley, Goldman Sachs Group and Allen & Co. were the senior bookrunners on the deal.

How to buy shares in Affirm

Before you can invest in Affirm, you'll need to open a brokerage account.

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Affirm. Find the stock by name or ticker symbol: AFRM. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until Affirm reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Affirm, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Affirm. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

What we know about Affirm’s balance sheet

San Francisco-headquartered Affirm has partnered with more than 6,500 merchants to offer its buy now, pay later services to over 6.2 million customers. And its financials paint an encouraging picture of new growth and diminishing losses.

For the three months ended September 30, 2020, Affirm reported $174 million in revenue and a net loss of just $15 million. The company reported $87 million in revenue and a net loss of $30 million for the three months ended September 30, 2019.

Affirm’s latest filing also says its gross merchandise volume grew by 77% year over year — a metric commonly used by e-commerce platforms in lieu of revenue figures to assess performance.

All told, Affirm’s balance sheet looks promising. It has yet to turn a steady profit, but it appears to be consistently narrowing the gap between its revenue and losses.

One potential hitch for investors to watch: On December 7, Capitol One announced it would not allow “buy now, pay later” transactions such as those Affirm offers on its credit cards. (Capitol One customers can still use debit cards or checks for such transactions.) The actual impact on Affirm isn’t clear.

How do similar companies perform?

It's impossible to predict how any stock will perform — and IPOs can be particularly volatile. But evaluating the performance of companies like Affirm can be useful in determining how the market is performing and whether now is a good time to invest in this industry. Select a company to learn more about what they do and how their stock performs, including market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

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