Affirm Stock Pops Nearly 16% as World Market Joins Its BNPL Network

Affirm Holdings, Inc. AFRM shares jumped 15.8% yesterday following the announcement of its new partnership with World Market, a national retail chain specializing in furniture, decor, and international food items, to provide its flexible buy now, pay later (BNPL) payment options.

Customers shopping in-store (at 246 U.S. locations) or online can now use Affirm to split their purchases into biweekly or monthly payments with terms up to 36 months and no hidden fees. This partnership expands Affirm’s merchant network — already over 358,000 strong — and strengthens its presence in the home goods and specialty retail space.

It also positions Affirm well for the summer shopping season by offering consumers more payment flexibility at a time of increased spending. Most importantly, it reflects growing retailer demand for transparent and flexible financing options, reinforcing Affirm’s brand and competitive edge. Zacks set the price target for the stock at $55 after the World Market partnership announcement. AFRM currently has a Zacks Rank #3 (Hold).

This new deal will likely support Affirm’s revenue growth by increasing transaction volume and merchant fees collected through World Market sales. Its total transactions surged 45.6% year over year to 31.3 million in the fiscal third quarter, on the back of a significant jump in repeat customer transactions.

The new partnership also helps diversify Affirm’s merchant base beyond tech and travel into everyday consumer categories like home and lifestyle. This aligns well with its 36% year-over-year revenue growth in the third quarter of fiscal 2025 and supports its push for sustainable long-term expansion.

AFRM’s YTD Price Performance

Over the year-to-date period, shares of Affirm have declined 11.8% compared with the 0.3% fall of the industry it belongs to. Yesterday’s jump helped the company recover a chunk of the losses it made following the earnings announcement, as fourth-quarter revenue guidance failed to impress investors.

Key Picks

Some better-ranked stocks in the broader Computer and Technology space are EverCommerce EVCM, Compass COMP and Automatic Data Processing ADP, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for EverCommerce’s current-year earnings of 18 cents per share indicates a 181.8% improvement from the year-ago level. It witnessed three upward estimate revisions and one downward movement in the past 60 days. The consensus estimate for EverCommerce’s current-year revenues is pegged at $589.7 million.

The Zacks Consensus Estimate for Compass’ current-year earnings indicates a 129% year-over-year improvement. It beat earnings estimates in each of the trailing four quarters, with the average surprise being 107%. The consensus estimate for Compass’ current-year revenues implies a 24.9% year-over-year increase.

The Zacks Consensus Estimate for Automatic Data Processing’s current-year earnings indicates 8.7% year-over-year increase. It beat earnings estimates in each of the trailing four quarters, with the average surprise being 3.5%. The consensus estimate for Automatic Data Processing’s current-year revenues implies a 6.6% year-over-year increase.

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This article originally published on Zacks Investment Research (zacks.com).

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