Confirm stocks plunge ahead of September earnings report

Consumer Finance Company Confirm position (AFRM) is expected to report a larger loss in the September quarter amid slowing customer growth Platoon Interactive (PTON). Confirm the stock fell Wednesday ahead of the fiscal first quarter report.


The company will report after the market closes. Fix the stock 12.7% to 137.73 today during afternoon trading in the stock market. AFRM shares are ​​at No. 6 in the IBD 50 List of Growth Stocks.

Analysts expect the provider of “buy now, pay later” installment payment services to report a loss of 36 cents per share versus a loss of 22 cents a year earlier.

Wall Street sees the San Francisco-based company reporting revenue of $248.7 million, up 43%. Gross trading volume will hit $2.5 billion, analysts estimate.

Confirm that stocks generate interest income

The IPO of AFRM shares in January raised $1.2 billion. Affirm gets most of its revenue from transaction fees paid by online retailers.

Buy now, pay later – or BNPL – services generally split interest-free payments into three or four equal installments over a period of two months or less. However, Affirm extends some BNPL plans to 60 months. In addition, Affirm derives more than a third of its revenue from interest income paid by consumers.

Heading into earnings, Affirm’s stock had a Relative Strength Rating of 98 out of the best 99 possible, according to IBD stock control. But AFRM shares are renewing from an IPO base of 138.08.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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