Affirm’s Recent IPO
Affirm debuted on the stock market Wednesday, January 13, 2021, with an initial offering price of $49 per share. That price did not last long; the company’s shares skyrocketed almost immediately upon opening. In fact, as of January 14, Affirm’s shares are trading at well over $120 per share — more than double the initial stock price. This price sets the company’s market cap at over $14 billion, a markedly large step up from initial predictions of around $10 billion before the IPO debuted.
The current share prices are even more incredible, considering Affirm had already raised its initial offering price in the week leading to its IPO — from a range of $33 to $38 up to $41 to $44. The success of Affirm’s IPO has been another major sign pointing toward the significant popularity of fintech companies and startups.
Affirm’s Product and Fintech Companies
Affirm’s IPO success is largely due to its business products, which have become extremely popular with consumers. The premise of what Affirm offers is a “buy now, pay later” system. The company offers upfront money for smaller purchases, such as apparel or electronics, which allows customers to buy a product that may be out of their price range. From there, the customer structures a monthly payment schedule with Affirm, which the company takes a small amount of interest on.
Affirm is one of many fintech platforms that are offering similar services. Other major names in the industry include Quadpay, Klarna, Afterpay, and PayPal. Furthermore, Affirm’s recent IPO can be a promising sign of times to come for many fintech startups who have yet to go public.
Affirm is showing very clearly that fintech companies are a massively valuable commodity. With the company’s stock prices more than doubling since its debut on Tuesday, many investors are taking strong notice of the “buy now, pay later” system ubiquitous with Affirm. The company and its many counterparts are offering themselves as an alternative to having a regular credit card; the millions of consumers using their service are showing what a powerful idea that is. Affirm’s recent IPO should set the company up well for future success and value.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.