Affirm Holdings (AFRM) saw impressive growth after exceeding Wall Street’s fiscal second quarter revenue estimates and posting a surprise profit, driven by strong demand in categories like travel and electronics. The company reported adjusted earnings per share (EPS) of $0.23, surpassing analysts predictions of a $0.10 loss.
Affirm founder and CEO Max Levchin joins Market Domination Overtime to discuss the results, highlighting that consumers are choosing the buy now, pay later platform due to its superior product.
"Folks are choosing Affirm at the point of sale because we have built a better mousetrap," he explains. "It’s a better product and it’s finally clear not just to consumers, but also, I think, to the shareholders," emphasizing that Affirm outgrew its nearest North American competitor by 10 points and globally by 20 points.
Despite economic uncertainties, Levchin notes that the US consumer remains healthy, with shoppers being selective in their spending. As Affirm offers a solution to higher costs, Levchin notes, "We’re taking share from credit cards, which we were founded as the antidote to revolving credit, and it seems to be resonating with consumers really strongly."
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