Shares of Affirm (NASDAQ:AFRM) shot up over 19% in yesterday’s trading session after the company announced the expansion of its partnership with Amazon (AMZN). Affirm will start providing its buy-now, pay-later (BNPL) services to Amazon Business users beginning November 24. This makes AFRM the first pay-over-time choice for AMZN’s business-to-business (B2B) store.
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As per the new terms of the agreement, customers will be able to split the full cost of eligible purchases into installments with Affirm without incurring late fees or any hidden fees. If approved, users can pay for Amazon purchases in equal installments over three to 48 months.
Amazon joined forces with Affirm over two years ago. AFRM’s BNPL services were initially presented to customers making purchases of $50 or more. It is worth mentioning that Affirm’s payment choice was integrated into Amazon Pay earlier this year.
Is Affirm a Buy or a Hold?
Turning to Wall Street, analysts have a Hold consensus rating on Affirm stock based on three Buys, eight Holds, and four Sells assigned in the past three months. Meanwhile, the average price target of $17.10 per share implies about 18.7% downside potential. The stock has gained 131.2% so far in 2023.
