Hey y'all! I've been building a position in affirm for a couple months now buying on dips and averaging up/down whenever I can. I have a position of 550 shares now and am planning on holding for 5-10 years. I'm not sure if I will buy any more at this time, since I have about all I want for the time being.
Many people seem to be torn on the BNPL narrative. I have read many people who scrutinize the business model itself, and the regulation that may have to come along with its maturity. I also understand that a BNPL company is only as valuable as its algorithm for picking reliable loans.
Does anybody have any thoughts on Affirm? Or it's competition for that matter? I, for one, am bullish mainly due to their strength in a high rate environment. I've been building this position in anticipation of rate cuts. I don't necessarily believe that the US will enter a recession, but the market may revisit a technical recession. We did just fly high for a while, and it may seem scary, but I plan on weathering that storm regardless as it's the decision I made while purchasing this stock.
I also believe that the company, while obviously still unprofitable, is extremely undervalued. At $8b market cap, this seems to me like a company that is neglected or forgotten about in the mid cap area. The CEO seems to be all around solid and very forward looking, it seems to me they have a solid mission and he plans to execute on this plan over years and don't give much credence to quarterly goal posts. That can be good or bad, depending on ones timeframe, I do recognize.
I am relatively familiar with the financials. The company seems to have it's market cap in total assets. It's GMV is also growing at a rapid rate. i
When rates should fall, I can only see this being a catalyst for further growth.
Any thoughts are always welcome, feel free to discuss and share information since I am not all knowing and love to hear other perspectives.
I also have a 40 share position in Spotify, and I trade options in conjunction with my stock portfolio. These are my only 2 long stocks, and I currently have a few cash secured puts sold on affirm. I chose these two stocks because I feel they can weather a technical or real recession. Although Spotify is a bit of a higher flyer having almost quadrupled from the bottom to where I have made my position.
Hope to get some cool discussion going, I used to post on another reddit account here a long time ago but I haven't in a long time!
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