Affirm's Pre-Covid Levels

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Affirm's Pre-Covid Levels

Shares of Affirm Holdings (Nasdaq: AFRM) dropped 13.80% in after-hours trading on Thursday after the financial tech company posted negative financial earnings.

Financials: Affirm posted a loss of 65 cents per share, which was below estimates.  The revenue was $363.1 million, which was better than expected.

The Good: Active merchants grew from 29,000 to 235,000 and active consumers increased by 96% year-over-year.

Going Back: Affirm’s founder and CEO Max Levchin said that “the growth of online commerce is falling back to pre-COVID levels.”

Outlook: Revenue guidance in the current quarter was between $345 million to $365 million, and for the full year it was between $1.625 billion to $1.725 billion; both were below estimates.

Numbers: Shares of Affirm are down 67% this year, but are up 35% in the past 30 days.

Final Thoughts: Affirm is in the Buy Now, Pay Later (BNPL) space, which has struggled in 2022 after a surprisingly strong 2021.

Notables

Notable Earnings Today: JinkoSolar (NYSE: JKS).

Notable IPOs Today: Hempacco Co., Inc. Common Stock (Nasdaq: HPCO), Jianzhi Education Technology Group Company Limited American Depositary Shares (Nasdaq: JZ).

Notable Equity Crowdfunding Campaigns Ending Today: Hook & Irons Golf and Social Lounge (Mainvest).

Notable Economic Events Today: Core PCE Price Index (8:30 a.m. ET), Goods Trade Balance (8:30 a.m. ET), PCE Price index (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), Retail Inventories Ex Auto (8:30 a.m. ET), Goods Trade Balance (8:30 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).

Toy Stocks in Focus Before Holiday Season

With the holiday season just a few months away, here’s a look at how toy stocks are performing this year.

Toy Giant: Mattel (Nasdaq: MAT) has seen its stock price jump 9% this year, although the growth has slowed down in recent months.

Not Good, Bro: Shares of Hasbro (Nasdaq: HAS) are down 18% in 2022, but are up 7% in the past month.

Big Gains: JAKKS Pacific (Nasdaq: JAKK ) is up 142% this year, which is incredible. That includes a 50% jump in the last 30 days.

Final Thoughts: Toy stocks are all over the place this year. It’s good to keep an eye on them before the holiday season starts.

Equity Crowdfunding Spotlight: Hydro Wind Energy

Briefly describe your business. We are solving three of humanity's biggest challenges; low-cost clean electricity, grid-scale energy storage, and clean water access. We are the creators of the world's only low-cost handheld seawater desalination device for humanitarian purposes.

What are the terms of the investment for your campaign? We are raising a Regulation CF campaign on StartEngine at a valuation of $120 million. Price per share is $10.38 and 385,355 shares are available. Previous investors and those investing $5,000 will receive up to 7% in bonus shares.

What makes your startup special? We are backed by institutions like Techstars, World Economic Forum, Amazon, and Shell, and operating in a $6 trillion energy and $500 billion water market. We are already generating revenue with 4,500 customers and over $500,000 in sales and preorders.

Trends to Watch

More Losses: NFT- and Metaverse-Related Cryptocurrencies Underperform as Floor Prices Sink (CoinDesk)

Mind the Gap: Gap withdraws 2022 financial outlook as Old Navy sales fall in second quarter (CNBC)

Bikeless: Peloton’s Quarterly Loss Tops $1.2 Billion as Bike, Treadmill Sales Plunge (The Wall Street Journal)

Go Big or Go Home: Mortgage rates climb again, jumping to more than 5.5% (CNN)

Get Used to it: The Majority of Car Loans Are Now Going Toward Used Cars (Jalopnik)

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