Affirm Stock (AFRM) Shows Bullish Fatigue Amid Valuation Concerns

Affirm Holdings (AFRM), a mobile-first digital commerce platform, has emerged as a fintech standout in 2025. The company's latest quarterly results showcased record-breaking metrics, including a 43% year-over-year surge in gross merchandise volume (GMV) to $10.4 billion, alongside a long-awaited shift to operational profitability.

Despite tracking the S&P 500 with a 20% year-to-date gain, Affirm's premium valuation tempers enthusiasm. While the growth trajectory and improving financials are commendable, the risk of overpaying for future gains justifies a neutral stance.

Affirm's increasing proportion of 0% APR loans highlights its competitive positioning in the buy-now-pay-later (BNPL) space, but market skepticism persists around its lofty valuation multiples.