I worked for a competitor of Affirm up until recently. Your video is spot on but also missed the other major threat, which is increased competition. BNPL companies are popping up everywhere with massive marketing budgets and all the sales teams are competing by lowering margins. The competition within BNPL is like the competition for delivery apps where none of them have a road to be profitable but are all just pouring money into acquiring new customers
When central banks are pumping up this liquidity based ponzi schemes, we will see more and more of such companies. Every money loosing company cannot magically turn into an amazon.
I know American Express has "Buy Now Pay Later" which let's you turn a large purchase into a fixed monthly cost, very similar to BNPL. Is there anything stopping other card issues are doing the same. Why would you open a new credit line when you could do what affirm and other BNPLs do right through the card you already own.
Open Pay expanded to the US in 2021. Prior to that, they were operating in Australia and New Zealand, so I would assume they've already managed to work the kinks out of their system.
Honestly Affirm helped me out a few times and I've always paid them back either early or on time because I've learned from my past mistakes and I'm legit happy they existed when I needed it.
I should have realized when I was 9 years old that finance was my calling when I saw the Pet Rock for sale for the first time. I was sooo ahead of my time I didnt realize it, they even came with certificates of adoption.
@@cooldudecs People that come up with that statement baffle me. If you owe $4000 and TAKE HOME $20/hour AFTER TAXES, it is going to take you 200 hours to pay off that debt and since the amount owed (debt) doesnt change, how the hell is it cheaper as time goes by? It makes no sense at all because either way you will need to dedicate 5 weeks worth of work to pay off that $4000, no matter how you cut it up.
Affirm made an easily replicable feature of a payment processor their entire company. There is nothing stopping larger companies like PayPal, Visa, or Google (Pay) from adding a BNPL option at the checkout screen, and they have way more money to spend on sales and marketing without the risk of bankrupting the company. And for that reason, I'm out.
PayPal offers it. Even though I have the cash to pay for whatever I buy online I still use this option most of the time even for small purchases. Since I have a PayPal credit line also it gets reported as positive payments to the credit bureaus.
Affirm declined me on signing up but Sezzle allowed me to use their service and get up to a $950 credit limit. I can buy items from Home Depot to fix the house I own. They have a Sezzle Flex card coming out soon that automatically splits a transaction into 4 payments
You can just imagine the credit card boardroom scene ''The bond is due and we can't pay it, what do we do ?'' After some deep thinking, one MBA executive exclaims ''Let's put it on the corporate credit card''. A collective 'Genius' erupts from the other members, as they award themselves extra bonuses.
I'm not an economist or an actuary but even I know that lending to the highest-risk population that you have zero collateral against during a global pandemic, the lowest job participation rate in decades, a supply chain crunch and 7% YoY inflation is terrible idea that is bound to soon fail, dramatically.
It's wework once again, pretend you're a tech firm when you're just a lending company, do an IPO and then dip when the stock plummets when people discover it's not some innovative crazy tech company.
Best that Affirm did not take Visa and MasterCard on head on! Competitive Strategy 101. Plus Affirm does not have brand equity. So Affirm ends up with low credit score customers = non performing loans = failure. Just because it sounds like Fintech doesn't mean it is!
I have a funny story: I tried to use Affirm about a year and a half ago to buy an Alienware laptop. I filled out all the info and got soundly rejected. 😂 It was to be my first BNPL attempt. I guess I am not Affirm’s preferred clientele.
I don't think them having the same default rate for customers means their AI doesn't work. It might just be that they aim for the same risk given their additional information
Exactly. Also speaking of the interest rate increase, Affirm offers more loans with 0 interest rate anyway so these loans won't be impacted. Credit cards are more likely to get hit by interest rate
I loved Affirm. I loved how upfront they were and the options you would get. I was so sad when I found out that my state had banned it. Apparently we're too stupid and would easily fall for their "scams"
2:44 "Americans are notorious for spending excessively on frivolous consumption". True. But the chart shown is not evidence. It's totally misleading. HK, China and Japan are only up there because of their ridiculous housing prices. Yeah, it's borrowing money to buy, but hardly frivolous.
An unemployed, dirt poor, 18 year old kid walks into a bank: "I'd like to get a $250,000 loan to buy a house and not make a payment for the first four, maybe five years." Bankers: 😅🤣😂🤣😂gfoh! An unemployed, dirt poor 18 year old walks into a bank: ""I'd like to get a $250,000 loan to take some college classes and not make a payment for the first four, maybe five years." Bankers: "Come on in! Sit down and let's get this loan written up ASAP!" 🤔🤨😕
As a data scientist, i see too much “artificial intelligence “ word thrown out there to describe every kind of possibilities and miracles. All. Want to see is what kind of data they are able get from the borrower. The algorithms are only able to give as accurate predictions from as accurate and as much information you can give it. Beside it, I don’t see any BNPL as helping any society. While we can make money today from stupid & wasteful consumers, we will all suffer when massive percentage of the public don’t have savings for emergencies or retirement. We will all end up paying more (taxes or/and societal disfunction) for their miss management
I agree, Borrowing is necessary. I’ve had very large expenses come up, and I’d rather keep my savings & brokerage account untouched. I can’t explain it, but I feel better psychologically separating my Checking money & Saving/investing money. If I go into debt, I’m confident I’ll pay it off but if I dip into savings, I feel bad about myself.
You said "the average interest rate is 20%" unsure if you meant for Affirm users, or in general, but I've never seen such a high %. I think that part of the argument neds more insight to be included really. What are the Affirm users actually paying compared to their credit cards.
plenty of people in the USA experience credit card interest rates approaching 30%. whatever the maximum allowable by law is in a particular state, that's just about what the least creditworthy are being charged.
I am curious as to the team that puts this content together. I enjoy these movies and watch them as they are released. In the about section of the channel, it talks about "we". Have a missed an introduction movie someplace? I'd love to know who is producing this content. Thanks!
i’ll be buying the stock at 30, the only reason this stock went down is cause rich people took profits at 140, watch them soon buying back and the stock going back to 160 as soon as the market recovers
I mean you just copied from the internet articles with a lot of missing information. Firstly, like you said, most of Affirm's loans are 0 interest rate anyway. Then how could fed interest rate increase impact these 0 rate loans? It will likely impact more on the credit cards which charges higher interest rate on any purchase. Also, 9:00 Delinquency problem you discussed is wrong. In the shareholder Q&A, people asked exact same question and answer is Affirm's model controls delinquency as an input instead of output. If they want, they can restrict the model and bring that down easily to its previous value. Lastly, their merchants account increase is not solely due to sales marketing, it is more likely due to the partnership with shopify that brings more merchants onboard
Affirm has to borrow their money from someone (or seek some other form of financing that becomes more expensive with rising interest rates) to provide their 0% loans. That would mean that they would have to charge the partner companies (retailers offering Affirm) more to break even or else Affirm would lose money faster than they planned to. A retailer could accept paying 3% of a sale to offer 3-month Affirm financing, but if rates increased, Affirm would have to charge more.
BNPL is not a proprietary business. It is a non-subjective industry, meaning the customer doesn’t care about what the quality of service is like as long as they pay a desired price or in this case interest rate. It’s a race to the bottom.
I see on Google where you got the household debt to gdp chart, but I think it's somehow wrong. I don't see South Korea on there, and South Korea always top the household debt to gdp chart globally.
Affirm feels like its targeted at people who are bad with money, but they only accept people who have good credit. Most people with good credit dont need to use affirm. It feels like a counter intuitive business model with a very specific client base for large purchases like airline trips or expensive equipment.
As with any investing when the hype is over, the business model is what important. Affirm business model is not sustainable. Any competitors can do what Affirm does such as PayPal.
While I don't believe a valuation 10 times higher than the credit card companies is appropriate, part of your presentation did support (or should I say "affirm") Affirm's business model. You said that Affirm's delinquency rate is the same as discover's. Yet Affirm actually lends money to an expanded lending pool that should be more risky than discover's. It stands to reason that if some of the people this company is lending to are folks that couldn't get credit from traditional credit card companies, yet they have the same delinquency rate as those traditional credit card companies, their AI model is doing its job. It's finding opportunities for lending that the traditional FICO score wouldn't.
You can't win vs. Visa and Mastercard. But you can win the debit card purchases. Give customers 3 days to convert a debit card purchase to Pay Later with a debit card hold. If they want Pay Later, just go to the app and make it Pay Later and make sure that debit card hold disappears so the customer has their checking account balance restored immediately upon committing to Pay Later. Think how tempting it is to raise your checking balance by going to the app and accepting Pay Later.
I JUST had my car fixed, and they were like that's $3k. I said uh I just spent $1.6k fixing it a month ago. Do you do payment plans? "No. sign up with Affirm." I did, and they offered a 3k "credit card" for 24% interest. Fuck that, I just got a loan with my credit union for 8%apr. I'd be fucked if I got sucked into that Affirm crap
They are a lender who claim they can identify potential clients using AI to determine their credit worthiness. So trying to give out loans to poor people. Not a good business model
I used affirm on StockX to get myself a PS5 I honestly think it was the worst mistake I’ve ever done because I know digging myself in debt on that is just stupid so I paid off my PS five I got an SSD with it as well paid that off and I never used affirm since it’s good but if you’re someone doesn’t have good management when it comes to money you’re probably be spending so much money without even thinking about it and then you just pile on a bunch of debt that you owe
Complaining about American debt-to-GDP is a bit silly since these days many countries and economies fraudulently hide debt while in others personal debt is very high but unrecorded since they are loans between individuals (google Hawala). Also, the US is among the fastest growing developed countries, of course there's plenty of debt, but most of it is not due to "frivolous consumption."
Block inc afterpay has a better sustainable business model than Affirm. I think Affirm is more similar to another Australian based BNPL provider called Zip pay. Which is also struggling right now
You did not mention their intern "accidentally" publishing their Q4 results on twitter before their earnings call, causing the stock to fall by 40% in a day.
What does “digital first” even mean anymore when it comes to banks and lenders? It has no meaning. ALL banks and lenders are pretty much digital first. I haven’t been on the inside of a physical bank in probably 15+ years. It’s just another catchphrase people use to try and sound smart.
Great video and some nice tips! This is a scary time for new investors but the best thing you can do is not to make decisions based on emotions. This could actually be a good time to buy more of your high conviction stocks or crypto on a discount. Wealth is created during bear markets, not bull markets. If your portfolio is really effecting your mental health then delete the app and go for a walk. Let the market do its thing and have a long time horizon. I buy and just trade long term more than ever, I have made over 16'btc from day trading with Mrs. Lauren Simmons in few weeks this is one of the best medium to backup your assets incase it goes bearish.
FinTech is such a stupid term. Nobody is doing anything innovative. Affirm is literally a CC company who is harvesting their fees from the producer not the consumer, but in return the producer just marks up their product to account for this, and everyone pays for it in the end, not just the users. It's stupid and encourages people to live outside their means. This world is going to get ugly when the housing market bursts and Karen has a home she's 600k underwater in because she bought it at a 3x multiplier from the build price just 10 years ago, she owes 15k on the card and to affirm. Affirm won't live through the first real recession it faces... and a lot of Americans are going down with them
All these FinTech companies come up with new ways to market and brand the same services that "legacy" financial institutions offer and/or have some way of understating the risk they carry. Statements like we can approve more loans that XYZ because A.I. etc does not actually mean you have reduced risk on you balance sheet. It just means you decided to provide credit to a person that others passed on (for some risk reasons) Its not the low hanging fruit you are picking here. The innovation is overstated and the risk is understated. This stock has a long way to go (down) if it even makes it in the long run.
If you live pay check by pay check!! That your first sign you can't afford it. Sooooooooo Don't buy it. You can live without it. Just like your emotions and feelings. Changes everyday.
How about someone make the opposite of these people. To be approved your looked at very closely but if you have excellent payment histories your rewarded with a very low interest rate.
To me it just seems like a super risky company to invest in, it’s still new, hasn’t experienced a long recession yet, loans out money to the riskiest borrowers and isn’t too original. I’m out
I worked for a competitor of Affirm up until recently. Your video is spot on but also missed the other major threat, which is increased competition. BNPL companies are popping up everywhere with massive marketing budgets and all the sales teams are competing by lowering margins. The competition within BNPL is like the competition for delivery apps where none of them have a road to be profitable but are all just pouring money into acquiring new customers
When central banks are pumping up this liquidity based ponzi schemes, we will see more and more of such companies. Every money loosing company cannot magically turn into an amazon.
I know American Express has "Buy Now Pay Later" which let's you turn a large purchase into a fixed monthly cost, very similar to BNPL. Is there anything stopping other card issues are doing the same. Why would you open a new credit line when you could do what affirm and other BNPLs do right through the card you already own.
@@rue3706 and at much lower interest too.....
Open Pay expanded to the US in 2021. Prior to that, they were operating in Australia and New Zealand, so I would assume they've already managed to work the kinks out of their system.
Affirm has partnerships with Amazon, Walmart, target, shopify and 160,000 merchants.
I bought affirm at 67 sold at 148, bought back in at 38. We shall see
The legend himself
@@sety409 Is this DFV ?
@@naxT890 No, i believe this one is indeed a cat
@@sety409 a Hairless Cat**
Lucky.
Honestly Affirm helped me out a few times and I've always paid them back either early or on time because I've learned from my past mistakes and I'm legit happy they existed when I needed it.
$76 a month. For 3 1/2 years. On a f**kin' treadmill. That is some insane s**t right there.
The users probably won’t use the exercise machines that long.
I should have realized when I was 9 years old that finance was my calling when I saw the Pet Rock for sale for the first time. I was sooo ahead of my time I didnt realize it, they even came with certificates of adoption.
@@id10t98 Yup, I remember those goofy things. Pure. Marketing. Genius.👍
Inflation makes debt cheaper.
@@cooldudecs People that come up with that statement baffle me. If you owe $4000 and TAKE HOME $20/hour AFTER TAXES, it is going to take you 200 hours to pay off that debt and since the amount owed (debt) doesnt change, how the hell is it cheaper as time goes by?
It makes no sense at all because either way you will need to dedicate 5 weeks worth of work to pay off that $4000, no matter how you cut it up.
Affirm made an easily replicable feature of a payment processor their entire company. There is nothing stopping larger companies like PayPal, Visa, or Google (Pay) from adding a BNPL option at the checkout screen, and they have way more money to spend on sales and marketing without the risk of bankrupting the company. And for that reason, I'm out.
And they have
PayPal offers it. Even though I have the cash to pay for whatever I buy online I still use this option most of the time even for small purchases. Since I have a PayPal credit line also it gets reported as positive payments to the credit bureaus.
Affirm is still the weapon of choice for people to get their hands on aftermarket car parts they cannot afford.
Car parts and shoes definitely, I know quite a few
Affirm declined me on signing up but Sezzle allowed me to use their service and get up to a $950 credit limit. I can buy items from Home Depot to fix the house I own. They have a Sezzle Flex card coming out soon that automatically splits a transaction into 4 payments
“Credit card companies are usually highly leveraged”
Now that’s ironic
You can just imagine the credit card boardroom scene ''The bond is due and we can't pay it, what do we do ?''
After some deep thinking, one MBA executive exclaims ''Let's put it on the corporate credit card''.
A collective 'Genius' erupts from the other members, as they award themselves extra bonuses.
Me too I’m just not the one making money lol
I'm not an economist or an actuary but even I know that lending to the highest-risk population that you have zero collateral against during a global pandemic, the lowest job participation rate in decades, a supply chain crunch and 7% YoY inflation is terrible idea that is bound to soon fail, dramatically.
Annnnnnnnd this is why you’re not an economist :)
@@silaskaiser3890 What are your predictions for Affirm?
@@patrickbateman6620 I predict it will encourage people to invite risk into their lives.
@@silaskaiser3890 invite risk to people that don’t know how to manage risk lol
@@willieluncheonette5843 Um, yes. 62.2 is the lowest rate since 1976 and it has been in a clear downtrend for over a decade. Try again.
It's wework once again, pretend you're a tech firm when you're just a lending company, do an IPO and then dip when the stock plummets when people discover it's not some innovative crazy tech company.
Best that Affirm did not take Visa and MasterCard on head on! Competitive Strategy 101. Plus Affirm does not have brand equity. So Affirm ends up with low credit score customers = non performing loans = failure. Just because it sounds like Fintech doesn't mean it is!
I have a funny story: I tried to use Affirm about a year and a half ago to buy an Alienware laptop. I filled out all the info and got soundly rejected. 😂
It was to be my first BNPL attempt. I guess I am not Affirm’s preferred clientele.
They only lend to people who have good credit
@@nadred5396 lol
My credit is "very good" on Equifax.
🤣😂😁😁
I don't think them having the same default rate for customers means their AI doesn't work. It might just be that they aim for the same risk given their additional information
Exactly. Also speaking of the interest rate increase, Affirm offers more loans with 0 interest rate anyway so these loans won't be impacted. Credit cards are more likely to get hit by interest rate
I loved Affirm. I loved how upfront they were and the options you would get. I was so sad when I found out that my state had banned it. Apparently we're too stupid and would easily fall for their "scams"
I feel like betting money on people mismanaging money is a safe bet.
Case in point you can dress anything up as a "disruptive tech" and get crazy valuations.
Great idea! Installment payments on goods using credit! Who would of thought of that? Brilliant!
BNPL is good for consumers but bad for the companies. Great channel btw
Affirm is a good company Easy to work with
2:44 "Americans are notorious for spending excessively on frivolous consumption". True.
But the chart shown is not evidence. It's totally misleading. HK, China and Japan are only up there because of their ridiculous housing prices. Yeah, it's borrowing money to buy, but hardly frivolous.
If the interest rate for a consumer credit based on your credit score is 20%, you probably should stop buying stuff.
I think at least 80% of people who pays that kind of interest rate would not think about that in the first place
Credit card companies start offering it during college years the credit limit is usually much lower then.
True. I was given a credit card application in my first year at University and got approved. That was in 1989.
An unemployed, dirt poor, 18 year old kid walks into a bank: "I'd like to get a $250,000 loan to buy a house and not make a payment for the first four, maybe five years."
Bankers: 😅🤣😂🤣😂gfoh!
An unemployed, dirt poor 18 year old walks into a bank: ""I'd like to get a $250,000 loan to take some college classes and not make a payment for the first four, maybe five years."
Bankers: "Come on in! Sit down and let's get this loan written up ASAP!"
🤔🤨😕
As a data scientist, i see too much “artificial intelligence “ word thrown out there to describe every kind of possibilities and miracles. All. Want to see is what kind of data they are able get from the borrower. The algorithms are only able to give as accurate predictions from as accurate and as much information you can give it. Beside it, I don’t see any BNPL as helping any society. While we can make money today from stupid & wasteful consumers, we will all suffer when massive percentage of the public don’t have savings for emergencies or retirement. We will all end up paying more (taxes or/and societal disfunction) for their miss management
I just bought some affirm. It's premiums are really good 👍
I went to Vagas and played on hand of 21 and won ‼️ Why better odds than stock market. No transaction fees in or out ‼️ Stock market "What a racket"‼️
It’s not just a way to live beyond their means. You can make a case for cash flow vs an upfront capital cost.
That's what I use it for !!
I agree, Borrowing is necessary. I’ve had very large expenses come up, and I’d rather keep my savings & brokerage account untouched. I can’t explain it, but I feel better psychologically separating my Checking money & Saving/investing money. If I go into debt, I’m confident I’ll pay it off but if I dip into savings, I feel bad about myself.
@@aaronbirook4367 👍
Making a position on affirm at these prices is worth the gamble imo
Retail ammunition prices will double in March, buy POWW now! POWW is an American company! Semper Fi!
You said "the average interest rate is 20%" unsure if you meant for Affirm users, or in general, but I've never seen such a high %. I think that part of the argument neds more insight to be included really. What are the Affirm users actually paying compared to their credit cards.
plenty of people in the USA experience credit card interest rates approaching 30%. whatever the maximum allowable by law is in a particular state, that's just about what the least creditworthy are being charged.
The stock took a major beating but this company is really great and will go up again.
Should I comment before I watch?
No
Yes if you want to elevate this video in the algorithm
Credit card company: " How do we get on the innovative bandwagon?"
Staff: "Let's repeat "A.I." on our prospectus like 700 times?"
SOLD!
Every tech company uses AI and machine learning as their marketing gimick.
Affirm has me auto approved for up to 8k at 0% . I'll continue to use them until they want to charge me
"They use AI to assess credit worthyness"
That alone should have tanked their stocks. It's as solid a business as MoviePass.
That graph looks like many other IPO's graphs in the last couple of years.
I am curious as to the team that puts this content together. I enjoy these movies and watch them as they are released. In the about section of the channel, it talks about "we". Have a missed an introduction movie someplace? I'd love to know who is producing this content. Thanks!
I use Affirm to buy stuff, I didn’t even know they went public
I was always thinking about getting affirm.... maybe I'll wait and get it when they go insolvent
I use them for purchases under 150 usually opting for whatever plan offers 0%.
i’ll be buying the stock at 30, the only reason this stock went down is cause rich people took profits at 140, watch them soon buying back and the stock going back to 160 as soon as the market recovers
I mean you just copied from the internet articles with a lot of missing information.
Firstly, like you said, most of Affirm's loans are 0 interest rate anyway. Then how could fed interest rate increase impact these 0 rate loans? It will likely impact more on the credit cards which charges higher interest rate on any purchase.
Also, 9:00 Delinquency problem you discussed is wrong. In the shareholder Q&A, people asked exact same question and answer is Affirm's model controls delinquency as an input instead of output. If they want, they can restrict the model and bring that down easily to its previous value.
Lastly, their merchants account increase is not solely due to sales marketing, it is more likely due to the partnership with shopify that brings more merchants onboard
Affirm has to borrow their money from someone (or seek some other form of financing that becomes more expensive with rising interest rates) to provide their 0% loans. That would mean that they would have to charge the partner companies (retailers offering Affirm) more to break even or else Affirm would lose money faster than they planned to. A retailer could accept paying 3% of a sale to offer 3-month Affirm financing, but if rates increased, Affirm would have to charge more.
what does household debt as a share of gdp mean? household debt to gdp appears to be a different statistic
Increased competition, they should pay attention on the commercial side with equipment financing, which is a huge market.
If it weren't for affirm over half of mustangs on the road would be stock 🤣
Shopify split payments uses affirm. I think that's big. I don't see Affirm going anywhere.
BNPL is a payment option not a business model. Shorting Block.
Such a great, simple explanation. Subbed
BNPL is not a proprietary business. It is a non-subjective industry, meaning the customer doesn’t care about what the quality of service is like as long as they pay a desired price or in this case interest rate. It’s a race to the bottom.
Lol I bought my purple mattress using affirm and you are right I still have my mattress after I paid it completely.
Never played with there stock. But affirm has done really good by me even offering zero interest in some stores.
I see on Google where you got the household debt to gdp chart, but I think it's somehow wrong. I don't see South Korea on there, and South Korea always top the household debt to gdp chart globally.
Affirm feels like its targeted at people who are bad with money, but they only accept people who have good credit. Most people with good credit dont need to use affirm. It feels like a counter intuitive business model with a very specific client base for large purchases like airline trips or expensive equipment.
They need to advertise on world-star hip hop and breakfast club.
As with any investing when the hype is over, the business model is what important. Affirm business model is not sustainable. Any competitors can do what Affirm does such as PayPal.
While I don't believe a valuation 10 times higher than the credit card companies is appropriate, part of your presentation did support (or should I say "affirm") Affirm's business model.
You said that Affirm's delinquency rate is the same as discover's. Yet Affirm actually lends money to an expanded lending pool that should be more risky than discover's.
It stands to reason that if some of the people this company is lending to are folks that couldn't get credit from traditional credit card companies, yet they have the same delinquency rate as those traditional credit card companies, their AI model is doing its job. It's finding opportunities for lending that the traditional FICO score wouldn't.
I love affirm easier to use than other servers like Klara
I bought a Ninja Airfryer using Affirm lol
They turned me down a while back but I would say affirm need to learn who they customers are
You can't win vs. Visa and Mastercard. But you can win the debit card purchases. Give customers 3 days to convert a debit card purchase to Pay Later with a debit card hold. If they want Pay Later, just go to the app and make it Pay Later and make sure that debit card hold disappears so the customer has their checking account balance restored immediately upon committing to Pay Later. Think how tempting it is to raise your checking balance by going to the app and accepting Pay Later.
Why does the entire modern western market economy remind me of a giant shell game?
Because that is what it is: bait-and-switch.
well as a user of Affirm for my musical purchases...I shall buy the stock. Had no idea they were publicly listed.
They provide an amazing service imo.
Amazing service doesn't equal profitable company
@@tomlxyz a company like this had no business going public in the first place. the fk's at the top got paid....
I JUST had my car fixed, and they were like that's $3k. I said uh I just spent $1.6k fixing it a month ago. Do you do payment plans? "No. sign up with Affirm." I did, and they offered a 3k "credit card" for 24% interest. Fuck that, I just got a loan with my credit union for 8%apr. I'd be fucked if I got sucked into that Affirm crap
They are a lender who claim they can identify potential clients using AI to determine their credit worthiness. So trying to give out loans to poor people. Not a good business model
PayPal offers a credit line as well.
I used affirm on StockX to get myself a PS5 I honestly think it was the worst mistake I’ve ever done because I know digging myself in debt on that is just stupid so I paid off my PS five I got an SSD with it as well paid that off and I never used affirm since it’s good but if you’re someone doesn’t have good management when it comes to money you’re probably be spending so much money without even thinking about it and then you just pile on a bunch of debt that you owe
Complaining about American debt-to-GDP is a bit silly since these days many countries and economies fraudulently hide debt while in others personal debt is very high but unrecorded since they are loans between individuals (google Hawala). Also, the US is among the fastest growing developed countries, of course there's plenty of debt, but most of it is not due to "frivolous consumption."
They aren’t innovative but for sure remixing the short term loan
Block inc afterpay has a better sustainable business model than Affirm. I think Affirm is more similar to another Australian based BNPL provider called Zip pay. Which is also struggling right now
There have been a whole lot of these "Rise And Fall" videos lately, huh?
Can you do a video of SQ please?
It looks like the Australians have monopolized the BNPL market with ease of use, no credit checks, and consolidation.
You did not mention their intern "accidentally" publishing their Q4 results on twitter before their earnings call, causing the stock to fall by 40% in a day.
Paid plant?
This is just fancy layaway... I'm from the hood and I coulda told ya this wasn't gonna work
Any time you see Cramer or Kudlow in the picture, look out for trouble.
PayPal is doing 2-3% loans for 24 months now…a better deal.
people who buy a chair for 450, and then use AFFIRM to spread the payments have personal finance issues.
Yeah, pretty much 60% of the working population
What would Dave Ramsey say?
Not first!
What does “digital first” even mean anymore when it comes to banks and lenders? It has no meaning. ALL banks and lenders are pretty much digital first. I haven’t been on the inside of a physical bank in probably 15+ years. It’s just another catchphrase people use to try and sound smart.
Everything is a gamble in stocks or in cryptos. Don't put anything you can't afford to lose.
Do SOFI next!
Used to be called lay-by
Great video and some nice tips! This is a scary time for new investors but the best thing you can do is not to make decisions based on emotions. This could actually be a good time to buy more of your high conviction stocks or crypto on a discount. Wealth is created during bear markets, not bull markets. If your portfolio is really effecting your mental health then delete the app and go for a walk. Let the market do its thing and have a long time horizon. I buy and just trade long term more than ever, I have made over 16'btc from day trading with Mrs. Lauren Simmons in few weeks this is one of the best medium to backup your assets incase it goes bearish.
Affirm doesn’t do 0% for 43 months. They only do 0% interest if you pay off in 3 months.
Let’s say you want to buy peleton $3k treadmill 🤣 💀
Nnoooooo, i use them to buy so much stuff
:(
FinTech is such a stupid term. Nobody is doing anything innovative. Affirm is literally a CC company who is harvesting their fees from the producer not the consumer, but in return the producer just marks up their product to account for this, and everyone pays for it in the end, not just the users.
It's stupid and encourages people to live outside their means. This world is going to get ugly when the housing market bursts and Karen has a home she's 600k underwater in because she bought it at a 3x multiplier from the build price just 10 years ago, she owes 15k on the card and to affirm.
Affirm won't live through the first real recession it faces... and a lot of Americans are going down with them
All these FinTech companies come up with new ways to market and brand the same services that "legacy" financial institutions offer and/or have some way of understating the risk they carry. Statements like we can approve more loans that XYZ because A.I. etc does not actually mean you have reduced risk on you balance sheet.
It just means you decided to provide credit to a person that others passed on (for some risk reasons) Its not the low hanging fruit you are picking here.
The innovation is overstated and the risk is understated. This stock has a long way to go (down) if it even makes it in the long run.
$24
If you live pay check by pay check!! That your first sign you can't afford it. Sooooooooo Don't buy it. You can live without it. Just like your emotions and feelings. Changes everyday.
No … not buying a peloton. … :P
It’s basically a credit card, without a credit card.
Affirm is for trips
Affirm is basically a data company.. don't sleep on it
Fintech, cryptos, NFTs now... too complicate or shady for me. I invest in things I understand, I'm an engineeer, I invest in EV, aerospace, airlines.
Defense contractors
Klarna is way better!!!
How about someone make the opposite of these people. To be approved your looked at very closely but if you have excellent payment histories your rewarded with a very low interest rate.
Doesn't Affirm check credit scores? If so why are they failing?
Do you know anything about my phone being hacked ❓❓❓❓❓❓❓❓❓❓❓❓❓❓
To me it just seems like a super risky company to invest in, it’s still new, hasn’t experienced a long recession yet, loans out money to the riskiest borrowers and isn’t too original. I’m out