Affirm, SoFi shares pop following earnings

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  • Shares of Affirm and SoFi soared in revenue on Thursday after both fintech companies reported earnings results.
  • Affirm also announced on Wednesday that it would expand its buying now, pay-later partnership with Amazon.

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Shares of fintech companies confirmed and SoFi weighed in on revenue after reporting earnings results for both companies on Thursday.

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Confirmed shares rose 15% on Thursday after the buyout now, after the pay company reported fiscal first-quarter revenue of $269.4 million, which beat analyst estimates of $248.2 million. Affirm also reported a quarterly loss per share of $1.13.

The company’s stock rose up to 30% in after-hours Wednesday after it said it was expanding its partnership with Amazon. Through the agreement, Affirm will operate as the only third-party buy-later option for Amazon nationwide, though credit card companies will be able to offer buy now to pay later options in the future. .

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Meanwhile, SoFi shares jumped over 14% on Thursday after the digital bank reported better-than-expected quarterly results on Wednesday evening. SoFi reported a loss of 5 cents per share in the third quarter, beating analyst estimates of a 14 percent loss per share. Revenue also surpassed Wall Street’s estimate of $251.6 million, coming in at $277.2 million.

CEO Anthony Noto told Businesshala’s “Squawk Box” on Thursday, the company’s diverse business model, which spans a range of lending, investing and financial services that benefit from a stay-at-home and open environment, has helped it generate revenue. But allowed to beat.

“We are the only one-stop shop for digital financial services, so this allows us to meet with members when they need it,” he said.

SoFi also saw its total products more than double year-over-year to 4.3 million, while members grew last quarter.

Analysts at Jefferies maintained a buy rating on SoFi and raised their price target for the stock to $26 as the company upgraded its revenue outlook and its continued growth for the current quarter.

The Jeffries analysts wrote, “We will continue to follow the momentum as well as the pace of new account growth within the financial SVC segment, and Galileo which we think is a differentiator for the company as it continues to scale . …”.

Galileo is the financial services and payments platform that the company acquired in 2020.

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