US stocks, as represented by the benchmark S&P 500 index, have done exceptionally well since the start of 2025. Still, a handful of them are currently in the oversold territory.

For investors, this could mean opportunity, particularly because a few of these oversold names are now flashing buy signals.

Plus, with investors now betting on a possible rate cut in September, technical indicators suggest three heavily sold-off names- Keurig Dr Pepper, Charter Communications, and Hormel Foods – are poised for a significant rebound ahead.

Each has dipped below the critical “30” threshold on the 14-day Relative Strength Index (RSI), a level often associated with oversold conditions and potential upside.

Keurig Dr Pepper Inc (NASDAQ: KDP)

Keurig Dr Pepper has taken a steep tumble, shedding over 17% this week following the announcement to acquire Dutch coffee giant JDE Peet’s in a deal valued at $18 billion.

The market reacted harshly, with HSBC downgrading the stock, citing the acquisition’s hefty price tag and increased leverage.

Analyst Sorabh Daga noted, “We don’t think KDP needed to lever itself up to 6-8x net debt/reported EBITDA to exit the Keurig coffee business.”

Yet, the deal isn’t without merit. The company expects $400 million in cost savings over 3 years and plans to split its beverage and coffee divisions into separate public entities.

With an RSI of 29 and Wall Street analysts projecting a 29% upside on average, KDP shares may be brewing a comeback.

Charter Communications Inc (NASDAQ: CHTR)

Charter Communications, the parent of Spectrum internet services, has seen its shares slide more than 4% this week, continuing a trend of investor skepticism.

Despite secular headwinds, Bernstein recently upgraded the stock to “outperform,” citing its undervalued price.

Analyst Laurent Yoon acknowledged the challenges but remained optimistic: “When something is cheap, it’s cheap for a reason… but we are looking ahead to CHTR’s narrative for ’26.”

With an RSI signaling oversold territory and the mean price target suggesting a potential 54% rally, Charter Communications stock may be nearing a turning point.

If the company can navigate its structural issues, the current weakness could represent a compelling entry point.

Hormel Foods Corp (NYSE: HRL)

Hormel Foods, known for its packaged meats and pantry staples, suffered a sharp 13% drop after disappointing third-quarter earnings.

The miss rattled investors, pushing the stock into oversold territory.

While the results were underwhelming, Hormel’s long-term fundamentals remain intact, supported by its strong brand portfolio and defensive positioning in consumer staples.

The RSI now sits below 30, and analysts see room for recovery as the company adjusts its pricing strategy and cost structure.

For contrarian investors, Hormel stock’s recent plunge may offer a rare opportunity to buy a stable name at a big discount – especially if inflationary pressures ease and margins begin to normalize.

The post These 3 oversold stocks are primed for significant gains appeared first on Invezz

Alibaba stock price surged to its highest level in March as Chinese equities surged after it published strong financial results on Friday. BABA also jumped after reports showed that it had developed a chip that could challenge NVIDIA. It rose to a high of $136.42, up by 71% from its lowest level this year.

Alibaba to challenge NVIDIA

The Alibaba stock price surged after the WSJ reported that the company had developed a chip that may challenge NVIDIA’s dominance. Most notably, the chip will be fabricated by a local Chinese company instead of TSMC. 

The new milestone comes as the US and China continue battling for technology dominance and as chips become the most important part of the global economy. 

The US has blocked Nvidia and its chip companies, like AMD and Intel, from selling advanced chips to China. It argues that these chips may help the Chinese military develop more advanced equipment. 

China has then gone to the offensive and invested billions of dollars to develop advanced chips. Just recently, the government recommended its companies against buying NVIDIA’s H20 chips after the administration gave it a go-ahead. 

Therefore, the BABA stock price surged as investors anticipated that it would become the next big player in the AI and semiconductor industry. 

Alibaba published modest results

The Alibaba stock price also jumped after the company published modest financial results. Its revenue rose by 2% to $34.5 billion in the second quarter.

Notably, excluding Sun Art and Intime, which the company has disposed of, its revenue growth would have been 10%. The net income jumped by 76% to over $4.8 billion, helped by its equity investments and gains from divested businesses.

The closely-watched Cloud Intelligence Group, which competes with Amazon’s AWS and Microsoft’s Azure, grew by 26% YoY to $4.6 billion as it continued to benefit from the AI demand.

Alibaba’s International Digital Commerce revenue rose by 19% YoY despite Donald Trump’s tariffs. The Chinese e-commerce business made $12.5 billion, a 10% YoY increase. 

However, the company’s Ele.me has come under pressure as competition from JD and Meituan jump. JD’s entry into the sector has led to a race to the bottom, with surging consumer discounts and rider incentives.

China stocks gains and Banma Network IPO

The Alibaba stock price has jumped because of the ongoing surge in Chinese shares as shown by the performance of the Shanghai Composite and equities like Cambricon. 

This stock rebound is mostly because Chinese investors have continued to turn to the market after the collapse of the real estate sector.

Alibaba shares have also jumped after the company decided to spin off its Banma Network Technology, which focuses on creating smart vehicle operating systems and cockpit solutions.

Alibaba stock price forecast

The daily timeframe chart shows that the BABA stock price has rebounded in the past few months, moving from a low of $78.9 in January to $135. It has already crossed the important resistance level at $132, the highest swing on May 14. 

The BABA stock price has jumped above all moving averages, while top oscillators have pointed upwards. Therefore, the stock will likely keep rising as bulls target the key resistance level at $146, its highest point on March 17. A move above that level will point to more gains, potentially to the resistance point at $150. 

The post Here’s why the Alibaba stock price has gone parabolic appeared first on Invezz

The Dow Jones, S&P 500, and Nasdaq 100 indices and their ETFs moved sideways last week as investors focused on monetary policy and Nvidia earnings. The S&P 500 Index pulled back to $6,460 from the year-to-date high of $6,500.

Similarly, the Dow Jones Index was trading at $45,545, while the Nasdaq 100 fell from $23,965 to a low of $23,415. This article looks at the top catalysts for the indices and the ETFs like VOO, DIA, and QQQ.

US nonfarm payrolls data

The most important catalyst for the Dow Jones, S&P 500, and Nasdaq 100 indices is the upcoming US nonfarm payrolls (NFP) data scheduled on Friday.

This is an important report that will provide more color on the health of the American economy and will help to determine what the Federal Reserve will do in the next meeting. 

In a recent statement at the Jackson Hole Symposium, Jerome Powell, the Fed Chair, hinted that the bank will cut interest rates in September, citing the deteriorating labor market. 

The last report showed that the economy created just 73,000 jobs in July, much lower than what analysts were expecting. This figure will likely be downgraded further based on what happened recently. Traders will want to see the revision. 

The indices and their ETFs will also react to the unemployment rate. Data shows that analyts anticipate that the jobless rate rose to 4.3% in August as the economy created 78k jobs.

A weak jobs report will confirm that the Federal Reserve will cut interest rates in September, which most analysts already expect. The stock market tends to do well when the Fed is cutting interest rates.

Donld Trump tariffs in limbo

The other major catalyst for the Dow Jones, S&P 500, and the Nasdaq 100 is the latest appeal decision on Donald Trump’s tariffs. In a ruling, a bench found that most of Trump’s tariffs are illegal, a move that the stock market would welcome. 

However, the court allowed the tariffs to remain, and the Trump administration appealed. Most analysts believe that the case will go all the way to the Supreme Court, which may side with the administration. 

Corporate earnings

The other minor catalysts for the indices and their ETFs will be corporate earnings. Just a handful of companies will publish their earnings, including names like Carnival, McCormick, Nike, Constellation Brands, and Lamb Weston.

The recent earnings season was highly successful. A report by FactSet shows that 98% of all companies in the S&P 500 Index have published their earnings. Of these 81% of them published an earnings beat, while the earnings growth was 11.9%. This was the third straight quarter of double-digit growth.

Top economic data

Another minor catalyst for the US stock market will be macro data from the United States and other countries. The top data to watch will be the final manufacturing and services PMI, JOLTs job vacancies, and ADP private sector data. 

While important, their impact on the stock market will be muted since all eyes will be on the nonfarm payroll (NFP) data.

The post Top catalysts for S&P 500 (VOO), Nasdaq 100 (QQQ), Dow Jones (DIA) next week appeared first on Invezz

Marvell stock price plummeted by over 18% on Friday after the semiconductor giant published its earnings report. MRVL plunged to a low of $62.87, its lowest level since June 4, and 26% from its highest point this month. So, is it safe to buy the MRVL stock dip or wait for it to plunge further?

Marvell stock plunged after earnings

Marvell Technology’s stock price plummeted even after the company published strong financial results. Its revenue surged by 58% in the second quarter to a record $2 billion.

This revenue growth was driven primarily by the tailwinds in the artificial intelligence (AI) industry and the recovery of it enterprise networking and carrier infrastructure businesses.

AI data center revenue jumped by 70% to $1.4 billion, a trend that may continue as it continues to reach large deals. Its enterprise and carrier revenye rose by 43%, a strong improvement considering that it has been in a slowdown in the past few quarters. 

Marvell’s revenue growth was accompanied by its margin expansion. Gross margin rose to 50.4% from the previous 50.3%, while the operating margin rose to 14.5%. This helped to push its net profit up by 120% to $585 million. The CEO said:

“Marvell’s growth is being fueled by strong AI demand for our custom silicon and electro-optics products, as well as a significant increase in the pace of recovery in our enterprise networking and carrier infrastructure end markets.”

The main reason why the Marvell stock price crashed is that the managment’s forward guidance was weaker than expected. Its guidance was that its revenue for the third quarter will be $2.06 billion, a 36% increase from the same period last year. 

While a 36% annual growth is a good one, it was lower than what analysts were expecting. Historically, Marvell tends to be highly conservative, meaning that its real numbers will likely be better than estimates. 

Marvell stock price also plunged after Nvidia, a top player in the chip industry, warned that its business was slowing. Also, there is a fear that some Chinese companies will disrupt the semiconductor industry. 

MRVL stock price technical analysis

The daily timeframe chart shows that the MRVL stock price has plunged from its highest point in January, when its market cap overtook that of Intel. 

It plunged from a high of $127.30 in January to a low of $47.50 in April. Most recently, the stock formed an ascending channel, which was part of its bearish flag pattern. It has moved below the lower side of this pattern.

Marvell stock price has moved below the 50-day and 100-day Exponential Moving Averages (EMA). It has moved to the strong, pivot, reverse point of the Murrey Math Lines tool. 

Therefore, the most likely scenario is where the Marvell stock price continues plunging, potentially to the year-to-date low of $47.50. It will then bounce back later this year.

Read more: JPM says ignore earnings noise and buy Marvell stock like there’s no tomorrow

The post Is it safe to buy the Marvell stock price dip or sell the rip? appeared first on Invezz

Silver has emerged as one of the strongest-performing precious metals in 2025, climbing more than 33% over the past year.

As of 8:20 a.m. Eastern Time today, silver traded at $38.80 per ounce, a 0.53% decline from yesterday’s $39.01 but still close to decade highs.

The metal’s surge highlights its unique role as both an inflation hedge and an industrial necessity, with expanding demand in electronics, renewable energy, and medical equipment.

While silver has historically lagged stock market returns, its recent rally shows renewed investor focus on its dual role as a store of value and an industrial commodity.

Silver price trends with 2025 data

Today’s price of $38.80 per ounce reflects a modest dip from yesterday, but over the past month, silver has advanced 1.61% from $38.15.

The one-year picture is even more striking, with a 33.47% increase compared to $29.44 per ounce last year.

This strength comes despite silver’s long-term underperformance relative to equities. Historical data show that since 1921, silver has trailed the S&P 500 by nearly 96%.

Investors who split portfolios equally between silver and stocks a century ago would now see the silver portion valued far lower.

Yet, silver continues to stand out in periods of inflationary pressure. Its ability to preserve value, combined with growing industrial use, has made it a sought-after asset in 2025.

Spot silver and price spread explained

The price often quoted in markets is the “spot silver” rate, representing the live level at which silver can theoretically be traded instantly. However, investors typically pay slightly above this figure to account for mark-ups, insurance, and delivery.

Another important concept is the “price spread”—the difference between the ask price (what buyers pay) and the bid price (what sellers receive). Narrow spreads usually suggest strong demand and liquid market conditions.

This spread is closely monitored by traders because it provides insight into market sentiment. Wider spreads can indicate weaker liquidity or reduced interest.

How to invest in silver

Silver investment options include physical ownership and financial instruments.

Physical assets range from bullion bars and rounds, which are bought by weight and purity, to minted coins such as American Silver Eagles or Silver Maple Leafs, which often carry collectable value.

Silver jewellery also trades above bullion value due to craftsmanship.

For those who prefer indirect exposure, silver ETFs provide access to funds backed by physical metal without the need for storage.

Mining company shares are another route, offering exposure to silver production while also diversifying risks tied directly to price fluctuations.

On most trading platforms, silver bullion and coins must meet the “three nines fine” standard of 99.9% purity, while lower-purity silver is typically classified as industrial or collectable.

Current precious metals prices

Alongside silver’s gains, other precious metals continue to move. Gold currently trades at $3,409.44 per ounce, platinum at $1,342.75, and palladium at $1,092.70.

Gold remains the largest safe-haven market, while platinum and palladium, like silver, display more volatility due to smaller trading volumes.

Silver has rallied nearly 25% so far in 2025, keeping pace with global inflationary trends and industrial demand. Analysts expect the momentum could push prices to new highs, supported by green technology applications such as solar panels and electric vehicles.

However, investors are cautioned that silver is unlikely to match long-term equity returns. Its role lies in diversification and hedging, not outsized growth.

For new investors, its relatively lower price compared to gold makes it an accessible entry point into precious metals.

The post Silver hits decade highs with 33% annual growth, now at $38.80 per ounce appeared first on Invezz

Marvell Technology shares tumbled Friday after the semiconductor company issued weaker-than-expected guidance, overshadowing otherwise strong quarterly results.

The chipmaker, which has been viewed as a key player in the artificial-intelligence hardware race, is struggling to convince investors that it can translate early momentum into long-term market share.

Earnings beat but guidance disappoints

Marvell reported earnings for the quarter ended in early August of 22 cents per share, swinging to profit as revenue climbed 58% year over year to $2.01 billion.

Adjusted earnings for the current quarter are projected at 74 cents per share, plus or minus five cents, compared with Wall Street expectations of 72 cents.

However, investors focused on revenue guidance of $2.06 billion, plus or minus 5%, which fell short of analysts’ forecast of $2.11 billion.

Shares sank 14% in premarket trading Friday to $66.75, extending a decline of more than 30% this year.

The muted outlook highlighted ongoing weakness in Marvell’s crucial data-centre business.

Despite optimism about demand for custom AI chips, questions remain about whether the company can secure long-term deals with hyperscale clients such as Amazon and Microsoft.

Market concerns over AI growth trajectory

Marvell stock surged earlier in the year alongside Broadcom, as investors anticipated that cloud customers would diversify beyond Nvidia by adopting custom silicon.

Yet Marvell’s AI revenue growth has lagged peers.

Melius Research analyst Ben Reitzes noted in a report that while Nvidia projects 50% AI growth next year and Broadcom expects at least 60%, Marvell’s 30% growth suggests it has yet to gain significant share.

Reitzes holds a Hold rating on the stock with a $70 price target.

Concerns have also mounted about Marvell’s relationship with Amazon, its largest custom AI chips customer.

Analysts suggest that the company may be losing business to Taiwan-based Alchip Technologies.

William Blair analyst Sebastien Naji acknowledged the risk of market share loss but said the company could still evolve its ASIC business into a more diversified and resilient operation.

He maintained an Outperform rating, pointing to management’s confidence in a fiscal 2029 goal of 20% share in what it estimates will be a $94 billion market.

Analyst downgrades and investor sentiment

Bank of America downgraded Marvell from Buy to Neutral on Friday, cutting its price target to $78 from $90.

Analyst Vivek Arya cited weaker visibility into AI growth prospects and uncertainty around key projects.

Specifically, he highlighted potential delays in Microsoft’s Maia program, which could now launch closer to fiscal 2028, and reduced confidence in Marvell’s role in Amazon’s next-generation 3nm chip initiative.

The bank also revised its forecast for Marvell’s 2026 data-centre growth to the mid-teens percentage range, down from prior estimates of 23% to 25%.

Arya wrote that the company’s latest earnings call lacked the level of conviction about AI opportunities seen in previous quarters.

The combination of cautious guidance and analyst downgrades has fueled investor concerns that Marvell may struggle to keep pace with competitors in the rapidly expanding AI semiconductor market.

While management reiterated its long-term ambitions, short-term uncertainty appears set to weigh on sentiment.

The post Marvell stock drops on weak guidance despite strong revenue growth appeared first on Invezz

Dell Technologies’ shares slipped nearly 9% in trading on Friday, after the company raised its full-year guidance but issued a softer-than-expected forecast for the current quarter.

Investors focused on the weaker near-term outlook even as Dell highlighted strong demand for artificial intelligence (AI) servers, which has become the company’s standout growth driver.

Full-year guidance lifted on AI-driven demand

The Round Rock, Texas-based technology firm now expects revenue for the full fiscal year to range between $105 billion and $109 billion, up from its earlier projection of $101 billion to $105 billion.

Earnings per share were forecast at a midpoint of $9.55, an increase of 10 cents from its prior guidance.

Dell’s AI-optimised servers were the clear highlight of the second quarter.

The company shipped $8.2 billion worth of AI servers during the period, taking its first-half shipments to $10 billion, already ahead of last year’s total.

It ended the quarter with an $11.7 billion backlog and raised its AI server shipment forecast for fiscal 2026 to $20 billion.

Chief Operating Officer Jeff Clarke said Dell was beginning to see a recovery in North American server sales and expected the momentum to continue, supported by growing demand for AI systems.

Third-quarter guidance disappoints investors

Despite the upbeat full-year outlook, Dell’s guidance for the current quarter failed to meet investor expectations.

The company forecast adjusted earnings per share of $2.45 at the midpoint, below analysts’ estimates of $2.51.

Revenue was projected to come in between $26.5 billion and $27.5 billion, in line with but not significantly above Wall Street’s consensus of $26.4 billion, according to FactSet.

While Dell anticipates profit growth in its infrastructure and client solutions groups, analysts noted that its traditional business segments remain more exposed to macroeconomic uncertainty.

Analysts weigh strength of AI cycle against risks

Brokerages were largely positive on Dell’s long-term prospects, though several flagged risks around competition and weaker spending in non-AI segments.

JPMorgan maintained an “overweight” rating with a $145 price target, citing optimism around the AI-driven compute cycle and the resulting demand for high-end branded servers.

Melius Research reiterated a “buy” with a $172 target, saying Dell should benefit each quarter from increased availability of Nvidia’s Blackwell GB300 systems.

TD Cowen, with a “hold” rating and a $130 target, warned that traditional server sales may flatten in fiscal 2026 as slower US government spending offsets upgrade demand elsewhere.

Barclays, at “equal weight” with a $131 target, pointed to concerns that larger customers may diversify purchases as AI server competition intensifies.

Morgan Stanley, with an “overweight” rating and a $144 target, said improvements in US enterprise execution and Dell’s PC business could help clean up the growth story.

The stock is rated a “buy” on average, with a median price target of $144.5, according to LSEG data.

The post Dell shares fall on mixed outlook but AI-related momentum drives optimism appeared first on Invezz

US stocks edged lower on Friday as investors booked profits following a week of strong gains and new record highs for the S&P 500.

A fresh inflation reading underscored persistent price pressures, tempering optimism after Nvidia’s blockbuster earnings earlier in the week.

Inflation data keeps Fed in focus

The S&P 500 dipped 0.3%, the Nasdaq Composite lost 0.64%, and the Dow Jones Industrial Average shed 56 points, or 0.07%.

The indices snapped a three day gaining streak.

The moves came as the Federal Reserve’s preferred inflation gauge, core personal consumption expenditures (PCE), rose 2.9% in July.

The increase was in line with expectations but marked an acceleration from the prior month and the highest reading since February.

“The Fed opened the door to rate cuts, but the size of that opening is going to depend on whether labor-market weakness continues to look like a bigger risk than rising inflation,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management in a CNBC report.

She added that Friday’s PCE reading keeps investor attention fixed on upcoming jobs data, with markets still anticipating a rate cut in September.

Earlt market movers

Nvidia, which reported 56% revenue growth for the prior quarter earlier this week, extended recent losses, slipping about 3%.

The Wall Street Journal reported that Alibaba had developed a more advanced chip to help fill the gap left by restrictions on Nvidia’s sales to China.

Alibaba shares rose more than 8% in US trading.

Other major movers included Caterpillar, which fell nearly 2% after warning it could face a $1.5 billion to $1.8 billion hit this year from tariffs.

Dell Technologies dropped 9% on a weaker-than-expected outlook for the current quarter, despite beating analyst forecasts for its most recent results.

Meanwhile, Ulta Beauty fell 3% even after raising its full-year revenue and earnings forecast, now expecting revenue of $12 billion to $12.1 billion and earnings of $23.85 to $24.30 per share.

Affirm Holdings rallied 20% after reporting fiscal fourth-quarter earnings of 20 cents per share on revenue of $876 million, topping consensus estimates.

Autodesk jumped 11% following stronger-than-expected second-quarter results and upbeat guidance.

Other gainers included SentinelOne, which climbed 6% on better-than-expected earnings and revenue guidance, and Ambarella, which surged 23% after lifting its revenue outlook on strong artificial intelligence demand.

Dollar Tree added nearly 1% after an upgrade from Telsey Advisory Group, which cited a clearer growth path following the retailer’s sale of Family Dollar.

Seasonal weakness and market outlook

The declines come just one day after the S&P 500 closed above the 6,500 level for the first time.

For August, the Dow Jones Industrial Average is on track to gain 3.4%, the S&P 500 2.6%, and the Nasdaq 2.8%.

Despite the upbeat month, seasonal trends have investors cautious heading into September, historically the weakest month of the year for equities.

Since 1950, the S&P 500 has averaged a 0.7% decline in September, according to The Stock Trader’s Almanac.

Still, some strategists remain optimistic. Chris Zaccarelli, chief investment officer at Northlight Asset Management, said any volatility in September or October would likely prove a buying opportunity, especially if the Fed begins cutting rates outside of a recession.

The post US markets open in red as inflation data weighs on sentiments appeared first on Invezz

Core July PCE inflation surged to 2.9% compared to last year, up from 2.8% the month before, and the highest we’ve seen in five months. The overall inflation rate stayed put at 2.6%.

The Fed has been hinting at cutting interest rates when they meet in September, but these new numbers are throwing a wrench in those plans.

When core inflation is ticking up instead of cooling down, it makes central bankers nervous.

The Commerce Department released these fresh figures, and Fed officials are poring over every detail right now. The fresh inflation numbers come in the backdrop of the Fed’s game plan around expectations of inflation reducing toward their 2% target.

July PCE inflation: Core prices rise but headline stable

The July inflation report shows consumer prices going up 0.2% from the previous month, and core inflation, the one that cuts out food and gas, climbed 0.3%.

Looking at the bigger picture, overall inflation stayed flat at 2.6% compared to last year, right where economists thought it would be. But that core number? That jumped from 2.8% in June to 2.9%, hitting the highest level we’ve seen since February.

What’s really telling is that despite all the Fed’s efforts to cool things down with higher interest rates, the price pressures just won’t quit.

The services side of things like restaurants, haircuts, that kind of stuff, looks like leveling off, but the Fed is watching it like a hawk.

Services make up such a huge chunk of what consumers spend money on that even small changes there can move the needle on overall inflation.

Fed’s dilemma: To cut rates or hold steady?

The Fed is walking a tightrope right now as the next meeting comes up on September 16-17, and Chairman Jerome Powell has been dropping hints that they might cut interest rates.

But here’s the problem: that core inflation sitting at 2.9% is way above their 2% sweet spot.

Wall Street seems pretty confident, though. Traders are betting there’s about an 83-87% chance of a quarter-point rate cut next month. They’re banking on inflation cooling down enough to give the Fed some breathing room.

Not everyone’s convinced this is smart timing. Some economists are waving red flags, saying that if the Fed cuts rates too early, it could accidentally throw gasoline on the inflation fire.

So what happens next? Everyone’s going to be glued to the upcoming jobs numbers and any new inflation data.

Those reports could totally flip the script on what the Fed decides to do. It’s one of those moments where a few data points could change everything.

Even with all the inflation worries, Americans kept spending in July.

Consumer spending jumped 0.3% after adjusting for inflation, and that’s the biggest increase we’ve seen in four months. People had more money in their pockets, and they weren’t afraid to spend it.

The post July PCE inflation climbs to 5-month high levels: will the Fed still cut rates? appeared first on Invezz

Affirm stock skyrocketed 17% on Friday after a robust quarterly earnings report and optimistic guidance for the fiscal year 2026.

What really got investors excited was the whole package. Revenue was growing fast, they actually made money this quarter (which hasn’t always been a given), and suddenly the whole “buy now, pay later” space is looking a lot healthier than it did a year ago.

This development is optimistic for Affirm stock as the BNPL industry has been through the wringer lately.

A lot of investors were wondering if these companies could ever actually turn a profit or if they were just burning through cash indefinitely.

Affirm stock nears 52-week high after earnings report

Affirm stock was trading at $93.23 at press time, very close to its 52-week high.

Revenue jumped 33% to $876 million, beating the $837 million that analysts were expecting. They also earned 20 cents per share, nearly double what Wall Street predicted.

The real standout was that Affirm actually made money, $69.2 million in net income compared to a $45 million loss the same time last year.

What’s encouraging is that Affirm seems to be getting more efficient at what they do, even as the buy-now-pay-later space faces tougher competition and more regulatory scrutiny.

The company is signing up more merchants to offer their payment options, and consumers are using their credit products more frequently.

CEO Max Levchin talked up the company’s careful approach to lending money and managing risk, while also pointing to their big bets on AI technology that personalizes the experience for users.

The company is also looking to expand internationally, which could open up new growth opportunities.

One thing that’s really working for them is those 0% interest deals. They’re pulling in new customers with these no-cost payment plans, and then many of those people end up using Affirm’s regular loan products later on.

It’s a smart way to build relationships and create a pipeline for more profitable business down the road.

Should you buy?

Wall Street analysts were pretty happy with what they saw from Affirm stock. Several firms bumped up their price targets and stuck with their buy recommendations after the earnings report came out.

RBC Capital Markets, Stephens, and TD Cowen all called out the 33% revenue jump and the 43% increase in total transaction volume.

They’re seeing Affirm stock as better positioned than most in the buy-now-pay-later space, which has been getting more crowded and competitive lately.

BTIG analysts made an interesting point as they think Affirm is starting to become a real problem for traditional credit card companies.

More people are using the Affirm Card, and those zero-interest payment plans keep attracting customers who might otherwise just put purchases on their regular credit cards.

The post Affirm stock surges near 52-week high after earnings beat: should you buy? appeared first on Invezz