Top 10 Stocks to Buy According to Jericho Capital Asset Management

8. Affirm Holdings, Inc. (NASDAQ:AFRM)

Number of Hedge Fund Holders as of Q4: 61

Jericho Capital Asset Management’s Equity Stake: $316.56 Million 

Affirm Holdings, Inc. (NASDAQ:AFRM) is a leading American financial technology company specializing in “buy now, pay later” (BNPL) services for consumers and merchants. Founded in 2012 by PayPal co-founder Max Levchin, Affirm has grown into the largest BNPL lender in the United States. As of 2024, the company reports 19.5 million users and processes approximately $26.6 billion in annual payments. By offering interest-free and low-interest installment payment options, Affirm Holdings, Inc. (NASDAQ:AFRM) enables consumers to make purchases more affordably while helping merchants drive sales and customer engagement.

Affirm’s financial performance in its fiscal 2025 second quarter, ending December 31, 2024, exceeded market expectations. The company reported earnings of $0.23 per share, a striking 215% surprise compared to the projected loss of $0.20 per share. This represents a significant improvement from the previous year’s earnings of $0.04 per share. In the prior quarter, Affirm Holdings, Inc. (NASDAQ:AFRM) was expected to post a loss of $0.36 per share but instead reported a narrower loss of $0.31, beating estimates by 13.89%. These consistent earnings surprises highlight the company’s ability to outperform expectations, reflecting both operational efficiency and growing consumer adoption of its BNPL services.

Revenue growth has also been a key driver of Affirm’s strong performance. The company posted revenues of $866.38 million for the quarter, surpassing analyst projections by 7.74%. This marks a substantial increase from the $591.11 million in revenue recorded in the same period a year ago. Over the last four quarters, Affirm Holdings, Inc. (NASDAQ:AFRM) has consistently outperformed consensus revenue estimates, demonstrating robust demand for its payment solutions.

Affirm Holdings, Inc. (NASDAQ:AFRM) continues to strengthen its market position, capitalizing on the growing trend of flexible consumer financing. The combination of higher-than-expected earnings and revenue growth indicates effective cost management and sustained expansion. However, challenges remain, including regulatory scrutiny of BNPL services and broader economic factors affecting consumer spending.