When a company’s share price surges on strong volume, momentum might sustain the uptrend.
Affirm Holdings (AFRM) traded above $95, then closed at $88.46 last week after posting fourth-quarter results. It earned $0.20 in GAAP EPS. Revenue increased by 33% Y/Y to $876.2 million. The company issued strong guidance for the rest of the year. Management feels good about originations. The credit side of the business is strong, while GMV accelerated in the quarter, setting a new company record.
0% APRs are attracting customers. As borrowing rises, Affirm may enjoy revenue from interest-bearing loans.
The student loan repayment resumption is a headwind for the sector. However, Affirm prepared for it by ensuring that the company did not overextend its borrowing. It continued to monitor the health of their borrowing levels.
In the 3D software space, Autodesk (ADSK) is an attractive buy. After it posted Q2/2106 results, the stock jumped by 9.1% on Aug. 29. It reported a 16.6% Y?Y growth in revenue, to $1.76 billion.
To drive sales, Autodesk progressed in optimizing its sales and marketing efficiency plan. By fiscal year 2027, expect this plan to offset headwinds from its new transaction model.
Autodesk Store is part of the new model. In the quarter, customers used to go to a transaction-based partner. The store widens Autodesk’s reach. This should lead to higher customer growth.
