Affirm Soars Double Digits on Tuesday. Is the Stock a Buy?

By Jeremy Bowman – Dec 16, 2025 at 9:01PM ESTKey PointsA weak jobs report seemed to benefit Affirm.CFO Rob O'Hare told investors that the business remained steady.The company also looks set to benefit from its renewed partnership with Amazon. These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: AFRMAffirmMarket Cap$22BToday's Changeangle-down(11.77%) $7.73Current Price$73.39Price as of December 16, 2025 at 4:00 PM ETInvestors liked what the CFO had to share.Buy-now/pay-later (BNPL) leader Affirm (AFRM +11.77%) is on the move again, jumping 10.2% on Tuesday as the company benefited from a broad upswing in BNPL and fintech stocks, in part on a weaker-than-expected jobs report, which could persuade the Federal Reserve to continue to lower interest rates. However, Affirm also provided some details on its business, including its five-year partnership extension with Amazon in a fireside chat with CFO Rob O'Hare that seemed to please investors. Image source: Getty Images. What's behind Affirm's pop The gains in Affirm stock came in two stages on Tuesday. The stock surged at the open, seemingly in response to a downbeat jobs report, and then jumped again after noon, which appeared to be prompted by comments from the fireside chat today. Other BNPL and fintech stocks, including Sezzle and Lemonade, also jumped today, benefiting from a share buyback announcement and an upgrade, respectively. Investors may see the jobs report as a boon for the BNPL sector as it could lower interest rates, which tends to encourage borrowing, and a challenging job market could spur demand for BNPL loans, which is good for Affirm as long as its credit model holds up. CFO O'Hare said that the business is performing in line with expectations and he was bullish on continued share gains even as the company faces difficult comparisons in the e-commerce market. He also called the Amazon renewal a "win-win," saying that terms would remain mostly the same and that the partnership has driven new customers for both businesses. Advertisement Affirm originally announced the five-year extension with Amazon in its third-quarter earnings report in November. O'Hare also dismissed third-party data that led to a 7% decline last week as having "significant tracking errors," and said the company is delivering healthy quarter-to-date trends. In response to the update, the BNPL stock got a bullish note from Evercore ISI, which reiterated its outperform rating and maintained a price target of $95. ExpandNASDAQ: AFRMAffirmToday's Change(11.77%) $7.73Current Price$73.39Key Data PointsMarket Cap$22BDay's Range$64.90 - $73.9852wk Range$30.90 - $100.00Volume11MAvg Vol5.9MGross Margin85.65% Is Affirm a buy? The BNPL sector is still risky, and there's a reason why investors have treated these stocks cautiously. Despite their growth rates, credit risk is likely to rise if the labor market continues to struggle, and there are signs of weakness in the credit market, including rising auto delinquencies. Overall, Affirm is delivering strong growth, with revenue up 34%, and it is profitable with a generally accepted accounting principles (GAAP) operating margin of 7% in its most recent quarter. The Amazon extension also reaffirms its industry leadership. Credit trends remained steady in the quarter as well, and delinquency rates are in line with previous years. Overall, getting some exposure to Affirm isn't a bad idea for growth stock investors, but they should also be mindful of the credit risk facing the company, given the volatility in the economy. About the AuthorJeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011.

Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.TMFHoboX@TMFBowmanRead NextDec 16, 2025 •By Eric VolkmanWhy Affirm Holdings Stock Raced Almost 12% Higher TodayDec 3, 2025 •By Justin PopeIs Affirm Stock Yesterday's News?Sep 3, 2025 •By Parkev Tatevosian, CFAI Analyze Affirm's Latest Earnings Results and Update My Rating on the StockAug 29, 2025 •By Eric VolkmanWhy Affirm Holdings Stock Blasted Nearly 11% Higher on FridayMay 13, 2025 •By Parkev Tatevosian, CFAShould Stock Market Investors Buy Affirm Stock?Apr 9, 2025 •By Parkev Tatevosian, CFAShould Investors Buy Affirm Stock During the Nasdaq Bear Market?