Affirm shares gain almost 7% after its most profitable quarter and expanding merchant network

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Affirm surges 6.63% today to $74.58

Highlights

Affirm posted record quarterly profit with revenues reaching $1.17 billion and a 51% increase in merchant count to 571,000.
CEO Max Levchin will step back from daily operations to focus on developing new products for the company.
Shares of Affirm trade below key short-term moving averages with technical signals showing oversold conditions, expected to range from $64.55 to $84.61 in the next five days.

Record profitability and user growth prompt management shifts

Affirm reported its most profitable quarter to date, with revenues reaching $1.17 billion and a 51% year-over-year increase in merchant count to 571,000. The company also highlighted 5.2 million users for the Affirm Card. CEO Max Levchin announced during the August earnings call that he will step back from day-to-day operations to focus on new product development.

Anton Kharitonov, expert at Traders Union, notes that Affirm's recent earnings strength is at odds with the stock's technical position. Despite record revenues and user growth, the share price still lags below key moving averages. He highlights that short-term momentum remains weak and oversold signals persist. The CEO transition could unsettle investor confidence in the near term. "Profitability is not translating into clear upward momentum yet — I expect cautious trading while bearish signals hold."

Viktoras Karapetjanc, expert at Traders Union, sees Affirm's quarterly performance as a testament to strong business fundamentals. He emphasizes the surge in merchant integrations and user growth as a foundation for further expansion. The company's leadership transition is viewed as a strategic move to accelerate product innovation. Karapetjanc remains constructive: "With the bullish structure intact above the 200-day average, I expect further growth as operational momentum remains robust."

Parshwa Turakhiya, analyst, believes Affirm presents both risk and short-term opportunity. Oversold momentum indicators contrast with sharp intraday gains, inviting tactical trading near the $74.27 and $76.07 levels. Sentiment is mixed as volatility spikes and recent news stirs attention. "This setup offers traders a chance to capitalize on swings, but any breakout above resistance should be monitored closely."

Intraday upside clashes with bearish momentum at resistance

Affirm is trading below its 20-day ($76.07) and 50-day ($77.21) moving averages but remains above the 200-day ($66.47), maintaining a bullish long-term trend alignment. Short- and medium-term conditions show ongoing seller pressure, with $76.07 as a near-term ceiling and $74.27 as a near-term floor. Momentum indicators are mixed: MACD and ADX are neutral, while RSI (38.98), CCI (-244.82), Stochastic RSI (0), and Bull/Bear Power (-2.15) signal oversold conditions, and the Awesome Oscillator is neutral. The price is trading near today's high and intraday volatility is elevated at 7.26%. There is a marked divergence between strong intraday upside price action and persistently bearish momentum signals.

Previously it was reported that Affirm faced persistent technical risks with downside pressure despite operational growth and a leadership transition. The current analysis adds that, even amid record profitability and user gains fueling a sharp rebound, traders should monitor the $74.27 support and $76.07 resistance as the key levels likely to define the next directional move.

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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