Selling pressure pushes Affirm stock lower in today's trading

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Affirm slips 3.01% today to $65.16

Highlights

Affirm reported 623% EPS growth and exceeded consensus earnings forecasts for four straight quarters, with a 71.8% average earnings beat.
Gross merchandise volume grew 35% year over year to $11.6 billion, while active merchants surged 44% to 515,000 amid new travel finance partnerships.
Despite strong fundamentals, Affirm faces selling pressure with an expected trading range of $59.88 to $73.08 as sentiment remains volatile and trend signals are mixed.

Earnings outperformance tempered by persistent selling despite new partnerships

Affirm reported substantial earnings growth, achieving 623% EPS growth and surpassing earnings estimates in each of the last four quarters, along with a 71.8% average earnings beat. The company's partnership with Royal Caribbean Group expanded to enable travelers in the U.K. and Canada to finance cruise bookings through Affirm, and the most recent quarter saw gross merchandise volume increase by 35% year over year to $11.6 billion. Total transactions rose 45%, active merchant count climbed 44% to 515,000, and a major sales event contributed to a 35% increase in sales compared to the previous edition, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees Affirm Holdings holding above its 50-day average but struggling to break the 200-day level at $67.50. He notes that despite strong recent earnings growth and boosted volumes from new partnerships, the broader price action is weighed down by persistent selling pressure and weakening momentum. Technical signals show MACD still positive, but mixed oscillators and a near-overbought RSI suggest rising risk of reversal. Kharitonov draws attention to the uncertain market sentiment and finds that buyers could be losing their edge. “Without a sustained push above $67.50, I believe Affirm is vulnerable to deeper pullbacks as short-term enthusiasm fades,” he says.

Viktoras Karapetjanc, expert at Traders Union, highlights Affirm’s impressive EPS growth and consistent outperformance of earnings estimates. He emphasizes the recent partnership with Royal Caribbean and strong year-over-year growth in both gross merchandise volume and merchant activity. Karapetjanc sees the bullish structure intact, with new revenue streams and product expansion favoring further growth. “I expect Affirm to capitalize on these successes and believe a break above $67.50 will set the stage for another run toward $73 in the coming sessions,” he says.

Divergent momentum signals as long-term resistance curbs short-term gains

Affirm trades below its 20-day moving average ($65.55) but remains above the 50-day ($56.64), with price still under the 200-day ($67.50). This setup sees the short- and medium-term trend structure stay positive, yet long-term resistance weighs from higher levels, with Ichimoku’s Kijun line near $64.74 giving the nearest dynamic support. Daily momentum is mixed: the Moving Average Convergence Divergence (MACD) remains firmly bullish, but the Average Directional Index (ADX) signals a weak trend. The Relative Strength Index (RSI) reads just under 60, not far from overbought, and both the Stochastic RSI and Commodity Channel Index (CCI) indicate neutral-to-moderate cooling, while the Bull/Bear Power (BBP) at 2.27 shows buyers continue to dominate, yet with an overbought warning. The session’s tone points to selling pressure emerging after the open and signals from oscillators diverge, reflecting unstable sentiment that matches the choppy intraday action.

Earlier, analysts noted that Affirm demonstrated ongoing strength in earnings growth and operational execution despite persistent technical resistance and market volatility. The latest updates reinforce this view while highlighting that the stock now sits at a key inflection point, with traders advised to monitor price action around the $64.74 support and the potential for a breakout toward $73 as volatility remains elevated.

Source of Data: AFRM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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