Why Affirm Holdings (AFRM) Went Up On Friday?

We recently published a list of 10 Firms Post Double-Digit Gains on Friday. In this article, we are going to take a look at where Affirm Holdings, Inc. (NASDAQ:AFRM) stands against other firms that posted double-digit gains on Friday.

The stock market fell into the red territory on Friday, with all major indices recording losses over renewed fears of growing trade tensions coupled with expectations of a higher inflation rate in the US.

The Dow Jones lost 0.99 percent, the S&P 500 declined 0.95 percent, while the tech-heavy Nasdaq dived by 1.36 percent.

Despite the overall pessimistic sentiment, 10 companies managed to defy losses, posting double-digit gains in their valuations amid a flurry of impressive earnings performance.

To come up with Friday’s top winners, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

An entrepreneur launching her new brand on the company’s platform, looking confident and joyful.

Affirm Holdings, Inc. (NASDAQ:AFRM)

Affirm Holdings, Inc. (NASDAQ:AFRM) grew its share prices by 21.81 percent on Friday to close at $75.22 apiece after reporting a strong earnings performance in the second quarter of fiscal year 2025.

In its earnings release, Affirm Holdings (NASDAQ:AFRM) said it swung to a net income of $80.36 million in three months ending December 2024, from a net loss of $166.9 million registered in the same period a year ago.

Revenues rose by 46 percent to $866 million from $591 million year-on-year.

In a letter to shareholders, AFRM CEO Max Levchin posted a bullish outlook for the company, saying that it was only five months away from its target date of turning AFRM’s operating income positive.

“But it should be apparent to a casual observer that we are nearly there today—mark it zero,” he said.

For the third quarter, however, AFRM projects revenues to settle between $755 million and $785 million.

Overall, AFRM ranks 4th on our list of firms that posted double-digit gains on Friday. While we acknowledge the potential of AFRM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AFRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.