Summary List Placement
Affirm extended its two-day post-IPO streak on Thursday as shares surged 31% at intraday highs.
The stock has now skyrocketed as much as 160% since it began trading publicly on Wednesday.
CEO Max Levchin said in a prepared video address after the IPO that more than 6 million consumers have used Affirm to pay-over-time since its founding.
He also noted over 6,500 vendors have used the online lending platform to help drive sales, and the company has done all this without “charging a penny” in late fees or hidden interest.
The online lender has seen over $10 billion in Gross Merchandise Volume transacted through its platform since July 1, 2016, according to recent SEC filings. And it appears Affirm has been able to secure customer loyalty as well, with 64% of all loans being taken out by repeat customers.
Still, some questions remain around Affirm’s reliance on one major customer, Peloton. The exercise equipment and media company represents some 30% of Affirm’s total revenue.
Major investors in Levchin’s startup include Peter Thiel’s Founder Fund, the venture capital firm Spark Capital, a Singaporean sovereign wealth fund called GIC, as well as Fidelity Management and Research Company LLC.
Affirm shares are traded at around $122.50 per share Thursday, and the company now boasts a market cap in excess of $14 billion.
Read more: Cathie Wood’s ARK Invest runs 5 active ETFs that more than doubled in 2020. She and her analysts share their 2021 outlooks on the economy, bitcoin, and Tesla.
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Source:: Business Insider