Affirm Holdings, Inc. (NASDAQ:AFRM) shares are trading higher on Wednesday after the company announced it is set to expand its credit reporting to Experian.
What To Know: Beginning April 1, Affirm will report all pay-over-time products, such as Pay in 4, to Experian, in addition to the longer-term installment loans the company already reports. This new policy will allow consumers to see all Affirm loans issued from April 1 onward reflected on their Experian credit file.
The new reporting will not be calculated into consumers' credit scores, at least initially.
"Affirm operates on the principles of transparency and putting consumers first, which is why we have been actively engaged with Experian and across our industry to build upon our credit reporting practices," said Libor Michalek, President at Affirm.
"Having all loans reflected in a consumer's financial profile will help protect and empower borrowers. The buy now, pay later industry must evolve from simply providing flexible payment options to helping consumers build their credit histories and better manage their finances, and we are pleased to be taking this step with Experian."
Following the announcement, Compass Point analyst Giuliano Bologna upgraded Affirm from a Neutral rating to a Buy rating and raised the price target from $61 to $64.
AFRM Price Action: At the time of writing, Affirm shares are trading 6.77% higher at $46.63, according to data from Benzinga Pro.
Image: Courtesy of Affirm, Inc.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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