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.




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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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