St. James Place share price suffered a harsh reversal, reaching a low of 1,300p, its lowest level since December 15. It has tumbled by over 16% from its highest point this year. Other wealth management companies in London, like Schroders, Aberdeen, and M&G, also retreated. So, is this STJ crash warranted?

Why St. James Place share price is crashing

St. James Place is a top wealth manager in the UK with over £225 billion and serving thousands of clients in the country. Its stock retreated sharply on Wednesday as investors reacted to the potential disruption by artificial intelligence.

This retreat coincided with the sell-off in American wealth management companies like Raymond James, Charles Schwab, and LPL Financial. 

The drop happened after a technology startup known as Altuist, which unveiled a tool to help financial advisors personalized strategie and create pay stubs, account statements, and other documents. 

The sell-off mirrored that of other companies that have plunged amid the growing concerns about AI disruption. For example, companies like the London Stock Exchange, FactSet, and S&P Global predicted that the data industry would be disrupted by these tools.

Similarly, software stocks like ServiceNow, Intuit, and Adobe have plunged as investors predicted that tools by companies like Anthropic will disrupt their business trajectory. Insurance brokers like Aon, Arthur Gallagher, and Willis Towers Watson also plunged after Insurify launched a similar tool.

However, there are signs that this fear is highly exaggerated. While AI has more room to grow, chances are that it will be complementary to these wealth management solutions. In a note, an analyst from Raymond James said:

“Completely overblown. I think at the end of the day people just want to trust their money with somebody, a person.”

The most recent financial results showed that its business continued firing on all cylinders at the end of last year. In a recent report, the company said that its advisors attracted over £21.9 billion, up a fifth on the previous year. The net inflows jumped by 42% to over £6.2 billion.

In a statement released last year, the company said that its profit rose to over £805 million, up sharply from the £577 million in the previous year. Its profit after tax soared to £279 million. 

STJ share price technical analysis

The weekly timeframe chart shows that the St. James Place share price has been in a strong rebound in the past few years, moving from a low of 377p in April 20242 to a high of 1,575p this year. 

It then suffered a harsh reversal this week amid the ongoing fears of AI disruption. This retreat happened after it hit a crucial support level at 1,513p, its highest level in January 2022. It was the upper side of the cup-and-handle pattern.

Also, the stock’s crash was part of the formation of the handle section of this pattern. Therefore, the most likely scenario is where the stock will likely resume the uptrend and hit the year-to-date high of 1,575p.

The post St. James Place share price dives amid AI disruption jitters: is this an irrational sell-off? appeared first on Invezz

The Dow Jones Index futures continued soaring today, February 11, as traders waited for key macro data from the United States and corporate earnings from top companies. It also rallied as Benjamin Netanyahu arrived in Washington to press for war and regime change in Iran. It jumped by 120 points to $50,305, much higher than its April 2025 low of $36,683.

Dow Jones Index futures rally gains steam 

The Dow Jones Index futures are soaring today, continuing a bull run that started in 2024 when it bottomed at $36,683. This rally accelerated this week as investors continued accumulating American shares amid the AI boom.

The Dow Jones Index will be in the spotlight in the coming days as investors reacted to the upcoming corporate earnings from some of the top companies in the United States.

More companies are expected to publish their financial results later this week. Cisco and McDonald’s, two of its constituent companies, will publish their financial results later on Wednesday.

Other top companies to watch later today will be T-Mobile, AppLovin, Shopify, Equinix, Hilton Worldwide, and Motorola Solutions.

More earnings will come out on Thursday this week, with the most notable of them being Applied Materials, Arista Networks, Unilever, Howmet Aerospace, Airbnb, and American Electric Power Company.  

While all these companies are not part of the Dow Jones Index, their numbers will likely have an impact as investors are still assessing the ongoing earnings growth. 

The most recent report by FactSet shows that most companies have reported strong results and boosted their guidance. The average earnings growth for companies in the S&P 500 Index has been 13%, the fifth consecutive quarter of double-digit growth.

US Jobs and inflation data ahead 

The next important catalyst for the Dow Jones Index will be the upcoming macro data, which will shed light on the American economy.

The first key data to watch will be the delayed non-farm payrolls (NFP) report, which will come out before the market opens.

Economists expect the data to show that the economy created about 70k jobs in January after adding 50k in the previous month. The unemployment rate is expected to remain unchanged at 4.4%.

The most important report will come out on Friday when the US will release the January consumer inflation data. Economists expect the upcoming report to reveal that the headline and core Consumer Price Index (CPI) slipped to 2.5% and 2.6%, respectively.

In theory, a report showing that inflation dropped should be bullish for the Dow Jones Index as it would raise the odds of the Federal Reserve cutting rates. However, Lorie Logan and Beth Hammack warned that inflation still remains above the 2% target, and the Fed will not have the incentive to cut rates.

The index will also react to the upcoming meeting between Donald Trump and Benjamin Netanyahu, which may lead to an attack on Iran.

Dow Jones Index predictions:  Technical analysis 

The daily timeframe chart shows that the Dow Jones Index has rebounded from a low of $36,628 in April last year to the current $50,305. It has constantly remained above the 50-day and 100-day Exponential Moving Averages (EMA).

The index has moved to the upper side of the ascending trendline, which connects the highest swings since July last year. It has also formed an inverted head-and-shoulders pattern, a popular bullish reversal sign.

Therefore, the index will likely continue rising as the bullish momentum gains steam. If this happens, the index will likely keep rising as bulls target the key resistance level at $51,000.

The post Dow Jones Index futures today: hits all-time high ahead of key market news appeared first on Invezz

GE Aerospace stock price resumed its strong bull run, moving from the pandemic low of $37 to $320, a 768% surge that pushed its market capitalization to over $336 billion. This rally may continue as the company faces fresh catalysts ahead.

GE Aerospace has Indian and Chinese catalysts ahead 

General Electric Aerospace, the biggest company in the jet engine manufacturing industry, has done well in the past few years as demand for aircraft soared. It also jumped as most airlines resume their growth after the pandemic.

The company faces some major catalysts that may lead to more growth in the coming months. One of them is from India, which reached a trade deal with the United States last week. A key part of the deal is that India agreed to buy Boeing planes worth over $80 billion in the coming years. Similarly, the country will buy airline engines worth over $20 billion.

The other potential catalyst for GE Aerospace is China, a key market for aircrafts. Donald Trump, who is a highly transactional president, plans to visit China in April this year.

Historically, Trump has used these foreign trips to ink deals with countries. One potential deal that will come from China will be Boeing jets and engines, a major breakthrough as Chinese airlines have paused their Boeing purchases for years.

Additionally, the company will benefit from Donald Trump’s plan to boost the country’s defense spending in the United States from $1 trillion to over $1.5 trillion.

The most recent results showed that the company’s business continued doing well in the past few months. Its report showed that its operating profit rose by 25% to $9.1 billion in FY’25. Its earnings-per-share (EPS) rose by 36% to $6.37, while the free cash flow jumped to $7.7 billion.

Its commercial engines and services revenue jumped to $9.5 billion from $7.7 billion in the same quarter in 2024. Also, its operating profit jumped from $2.2 billion to $2.3 billion.

GE Aerospace is a major defense and systems business in the past few quarters. It moved from $2.5 billion in Q3’24 to $2.8 billion Q4’25.

Wall Street analysts are highly bullish on the GE Aerospace stock price, with the average target being $357, higher than the current $320. The most recent upgrade came from JPMorgan, which raised the target from $325 to $335. RBC Capital sees the stock rising to $340, while UBS and Citi expect it to move to $374 and $380, respectively.

GE Aerospace stock price technical analysis 

The weekly chart shows that the GE stock price has soared in the past few months, moving from a low of $37 in 2022 to the current $320.

It has remained above all moving averages, the Supertrend indicator, and the Ichimoku cloud. 

Therefore, the most likely scenario is where the stock continues rising as bulls target the key resistance level at $400, up by 25% above the current level. 

The post GE Aerospace stock points to more gains as new major catalysts emerge appeared first on Invezz

The KOSPI Composite Index continued its strong bull run after crossing the key milestone at KRW 5,000. It jumped to a record high of KRW 5,380 this month, meaning that it has soared by 132% from its 2025 low, making it one of the best-performing indices globally.

This article explores why the KOSPI is in an unstoppable bull run and whether it is a buy as it gets extremely overbought.

South Korean stocks continue rally as the AI fears fade

The KOSPI Index has been in a strong bull run in the past few months, helped by the ongoing friendly policies implemented by the country’s president, who predicted that it would jump to KRW 5,000.

This rally accelerated after South Korea and the United States reached a trade deal last year. This deal saw Donald Trump reduce tariffs in exchange for massive South Korean investments in the United States.

The KOSPI Index has thrived as the artificial intelligence boom gained steam. This is important as South Korea is one of the biggest players in the industry, with companies like Samsung and SK Hynix being the most significant.

The index continued rising on Tuesday, mirroring the performance of its American counterparts like the Nasdaq 100 and S&P 500 indices, which approached their all-time highs this week.

Fears of the AI industry waned after Google raised $20 billion in its biggest US dollar bond sale as it seeks to boost its AI spending. In a statement last week, the top four companies in the industry said that they would spend over $660 billion on AI this year.

This spending will boost top South Korean companies, especially those that make memory products. SK Hynix, a top memory company that supplies products to NVIDIA, jumped by 150% since September, while Samsung soared by 40% this year.

Meanwhile, recent data showed that South Korean growth is continuing. Consumer inflation has plunged to the lowest level in five months, while the manufacturing PMI jumped to the highest level in 17 months. 

Additionally, a report showed that the trade surplus moved into a surplus, with its export growth accelerating to the highest level since 2021. Its current surplus surged to a record high in 2025.

Foreigners have also continued moving to South Korea,  which explains why the won has pulled back in the past few days.

Most companies in the KOSPI Composite Index have soared this year. Mirae Asset soared by 124% this year, while Daewoo Engineering, Hanwha Systems, Hannong Chemicals, Kumho Electric, and Korea Electric Power jumped by double digits this year.

KOSPI Composite Index technical analysis 

The weekly chart shows that the KOSPI Index has been in a strong uptrend in the past few months, moving from a low of KRW 2,308 in April last year to KRW 5,310.

It has moved above the 50-week and 100-week Exponential Moving Averages (EMA) and the Supertrend indicator, a sign that bulls remain in control for now.

The main risk, however, is that the Relative Strength Index (RSI) and the Stochastic Oscillator have continued soaring and are now comfortably in the overbought level.

Therefore, the most likely scenario is where Index continues rising in the near term, followed by a pullback, potentially to the key support level at KRW 5,000. 

The post KOSPI Index rallies and gets overbought as the AI boom gains steam appeared first on Invezz

The British American Tobacco share price has done well in the past few years and is now hovering near its all-time high as demand for its products and its dividend rise. BAT was trading at 4,395p on Tuesday, a few points below the all-time high of 4,610p. Will BATS rise or fall after its earnings on Wednesday?

British American Tobacco share price rallies ahead of earnings 

The BAT stock price has been in a strong uptrend in the past decades. It has soared from 70p in 2008 to the current 4,500p, bringing its market capitalization to over £133 billion, making it one of the biggest British companies today.

This surge has mirrored that of other tobacco stocks like Altria and Phillip Morris, even as the global tobacco consumption has continued falling in the past few years.

The next important catalyst for the BAT share price will be the upcoming financial results on Wednesday. These results will provide more color on the business, especially the progress in the United States.

The most recent results showed that BAT’s revenue rose by 1.8% in the first half of the year to over £12 billion. This growth happened as the new category revenue rose to over £1.65 billion, while its operating margin remained flat at 42%. The results were much higher than its guidance.

The management cited the strong positioning in the US combustibles and modern oral business, which has continued doing well in the past few months. This category has some of the highest margins in its business, a growth trend that will continue in the foreseeable future. 

The combustibles business also did well, with the revenue rising to over £9.93 billion from £9.8 billion.

At the same time, the management has focused on savings in the past few months and was on track to save over £1.2 billion. Its new commitment is to save about £2 billion from 2026 to 2030.

Management is optimistic about growth

In a recent report, the management predicted that its full-year revenue will grow by 2%, with the new category segment growing by double digits, helped by Velo. Its report showed that Velo’s market share jumped by 460 basis points to 16%. Vuse has also done well, helped by US authorities who are tackling illegal sales. The CEO said:

“Recent Vuse volume and revenue improvement in the U.S. is encouraging, although the Vapour category continues to be impacted by illicit proliferation. We believe Vuse is well positioned to benefit from stronger Federal and state-level enforcement.”

BAT share price technical analysis 

The weekly timeframe chart shows that the BAT stock price has been in a strong relentless bull run for years. It soared from a low of 1,858p in 2024 to the current 4,400p.

The stock has moved above the important resistance level at 4,000p. It also jumped above all moving averages, a sign that bulls are in control. It also remains above the Supertrend indicator.

The risk, however, is that the stock has formed a bearish engulfing pattern, which is a common reversal sign. Therefore, it may retreat to the key support level at 4,200p and then resume the uptrend. On the other hand, a move above the all-time high of 4,613p will invalidate the bearish outlook.

The post British American Tobacco (BAT) shares outlook ahead of earnings: is it a buy? appeared first on Invezz

The USD/ZAR exchange rate remained under pressure, moving from a high of 19.93 in April last year to the current 16. The South African rand surge may accelerate in the coming weeks, helped by the strong macro data from the country. 

South African exports are soaring despite US tariffs 

Macro data released on Monday showed that South Africa’s agricultural exports continued rising last year, even as shipments to the United States plunged because of Donald Trump’s tariffs.

Exports jumped to $15.1 billion, up by 10% from the same period in 2024. It was the seventh consecutive annual increase, with sales to Africa accounting for most of the sales.

South Africa’s exports soared in other areas, including precious metals, including gold, palladium, and platinum, which benefited from the soaring prices. Gold has jumped to over $5,000, while key metals like platinum peaked at $2,920 and palladium at $2,165.

The country now hopes to become a major player in the rare earth industry., which is becoming popular as tensions between the US and China accelerated. In a statement, the Industrial Development Corporation announced that it backed $20 million in Frontier Rare Earths, a company with assets in the country.

Data compiled by the government showed that South Africa’s economy expanded by about 1.3% in 2025, a figure that is expected to grow to 1.6% this year.

The country has benefited from the ongoing stability because of the ongoing coalition government between the ANC and DA parties. 

Most importantly, the load shedding process that continued for years because of Eskom’s mismanagement. The company kept the lights on for 231 consecutive days, citing better maintenance of its plants. As a result, its profit soared by 26%.

The country’s inflation has stabilized in the past few months. Data shows that the headline Consumer Price Index was 3.6%, within the previous target range of the South African Reserve Bank (SARB). However, energy costs may rise soon after the energy regulator allowed Eskom to raise tariffs to recoup $3.4 billion after a series of errors.

The next key catalyst for the USD/ZAR pair will be the upcoming US non-farm payrolls (NFP) data and consumer price index (CPI) reports.  Economists expect the upcoming data to show that the economy added over 70k jobs in January.

The US will also release the latest Consumer Price Index (CPI) data on Friday. Economists expect the upcoming report to show that the headline Consumer Price Index retreated from 2.7% in December to 2.5% in January.

USD/ZAR technical analysis 

The daily timeframe chart shows that the USD to ZAR exchange rate has crashed in the past few months, moving from a high of 19.93 in April to the current 16. It has moved below all moving averages and the Supertrend indicator.

The Relative Strength Index (RSI) and the MACD indicators have continued falling in the past few weeks. Also, it has moved below the Strong, Pivot, Reverse level of the Murrey Math Lines tool.

Therefore, the most likely scenario is where the pair continues falling, potentially to the ultimate support level of 15.62. A drop below that level will point to more downside, potentially to the psychological level of 15.

The post USD/ZAR forecast: South African rand jumps as key exports soar despite Trump tariff appeared first on Invezz

NatWest share price suffered a harsh reversal, moving from a high of 704p on February 4 to the current 633p. This retreat happened after the company announced its buyout of Evelyn Partners ahead of its upcoming earnings. It has also formed a few bearish chart patterns, pointing to more downside in the near term.

NatWest acquires Evelyn to boost its wealth management business

NatWest, formerly known as Royal Bank of Scotland, announced that it was acquiring Evelyn Partners in a deal valued at over £2.7 billion. It bought the company from Permira and Warburg Pincus, popular companies in the private equity industry.

The deal will give NatWest over £67 billion in assets and help to provide NatWest with substantial fee income in the future. The fees will help it to offset the net interest income (NIM) now that the Bank of England (BoE) has hinted that it will cut interest rates.

It also helps the company to diversify its business in the high lucrative private banking and wealth management business. In a statement, Paul Thwaite said:

“This represents a strategically and financially compelling use of capital, enhancing income diversification and strengthening returns in a high‑growth segment, to deliver sustainable long‑term value creation.”

It is common for a company’s stock to drop when a company announces a major acquisition. 

Other UK banks have made such buyouts in the past. For example, Lloyd’s Bank acquired Schroders Wealth last year, while HSBC bought Citigroup’s retail wealth management in China.

NatWest to publish its earnings 

The next important catalyst for the NatWest share price will be the upcoming financial results, which will come out on Friday this week. 

Analysts expect the company’s revenue and profitability growth to continue in the coming years. The consensus view is that the Net Interest Income (NIM) jumped to £3.32 billion, bringing the full-year figure to £12.7 billion. NatWest made over £11.27 billion in NIM in the previous year.

Analysts also expect the company’s growth to continue in the coming years, with NIM rising to £13.89 billion, £14.7 billion, and £15.21 billion in the next three consecutive years.

The total income is expected to come in £4.214 billion, bringing the full-year figure to £16.53 billion. It will then jump to £17.52 billion this year and £18.5 billion and £19 billion in the next two years.

Chances are that the company will publish stronger results than expected, mirroring the performance of other European banks like Unicredit, Société Générale, and Deutsche Bank, which published strong numbers and boosted their guidance.

NatWest share price technical analysis

The weekly chart shows that the NWG share price has pulled back in the past few weeks, moving from a high of 704p to the current 633p.

It formed a shooting star pattern, which is made up of a small body and a long upper shadow. The Relative Strength Index (RSI) has pulled back from the overbought level of 70 to the current 60. 

Similarly, the two lines of the MACD indicators have formed a bearish crossover pattern. Therefore, the most likely scenario is where the stock continues falling, potentially to the key support level at 600p. On the other hand, a move above the year-to-date high of 704p will invalidate the bearish outlook.

The post NatWest share price dips after the Evalyn buyout as traders eye Q4 earnings appeared first on Invezz

Crypto stocks, including digital asset treasury (DAT), exchanges, and miners, have plunged this year as Bitcoin and most altcoins imploded. Bitcoin price plunged to $60,000, while most altcoins fell to their multi-year lows. This article explores some of the top crypto stocks to watch this week.

Coinbase stock in focus ahead of earnings

Coinbase stock price has imploded in the past few months as it plunged from a high of $445 in July last year to the current $165. This crash happened as Bitcoin and most altcoins continued their strong crash.

Crypto exchanges make more money when prices are rising since this usually attrracts more users to the ecosystem. Therefore, analysts believe that Coinbase’s revenue and profitability growth will remain under pressure for a while.

On the positive side for Coinbase, it has invested heavily in other services. It makes millions of dollars in blockchain rewards, stablecoins, custody, and subscription business. It has also moved to the predictions and tokenized stocks industry.

Coinbase will be a top stock to watch this week as it releases its financial results. Analysts believe that its quarterly revenue will come in at $1.85 billion, down by over 18% YoY. This figure will bring the annual revenue to $7.25 billion, up by 10% YoY.

The company’s earnings per share (EPS) is expected to come in at $1.01, down sharply from the $4.68 it made 

Robinhood stock in the spotlight ahead of its earnings

Robinhood is another top crypto stock to watch this week as the company publishes its financial results. The stock has retreated from a high of $155 in October to the current $82.

While Robinhood is known for stocks and options trading solutions, it has become a major player in the crypto industry. Users can trade and invest in digital coins on its platform and on BitStamp, the exchange it acquired last year. 

The most recent results showed that Robinhood was one of the fastest-growing players in the crypto trading solutions as its revenue jumped by triple digits. The upcoming results will likely show that the segment slowed in the last quarter as the crypto market crash happened.

Analysts expect the upcoming results to show that its revenue rose by 32% in the last quarter to $1.34 billion. This growth will bring its annual revenue to over $4.5 billion. The revenue growth is expected to slow from 53% in 2025 to 22% this year.

BMNR and MSTR stocks in focus as NAV falls

Strategy, formerly known as MicroStrategy, and Tom Lee’s BitMine will be in the spotlight as investors focus on their crypto holdings. MSTR stock price jumped by over 26% on Friday as Bitcoin stabilized above $60,000. Similarly, BitMine rebounded sharply as Ethereum bounced back. They all remain sharply lower than their all-time highs.

The stocks will be in the spotlight this week as they reveal their crypto purchases last week as Bitcoin and Ethereum prices dropped. Also, they will react to the performance of their core holdings.

Analysts have mixed sentiments on the two companies. Some believe that they have now become extremely oversold and bargains. For example, TD Cowen boosted the MSTR stock target to $440 saying that it had become oversold and cheap.

The other top crypto stocks to watch this week will be mining companies like IREN, Bitfarms, and MARA Holdings.

The post Top crypto stocks to watch this week: HOOD, COIN, MSTR, BMNR appeared first on Invezz

Boeing stock price has pulled back in the past few weeks, moving from the year-to-date high of $254 to the current $236. Still, the company has some potential catalysts that may drive it higher in the coming weeks or months.

India and potential Boeing orders 

There are signs that Boeing’s business is expecting more orders in the coming months, a move that will see it narrow the backlog with Airbus.

In a statement, Piyush Goyal, India’s Commerce and Industry minister, said that the country was preparing to make an $80 billion order from Boeing. With services and engines included, he believes that the value of imports from the United States will be worth over $100 billion.

The minister said this as he commented on the recently announced deal between the US and India that reduced the tariff to 18%. Air India recently announced an order of of 30 737 MAX planes last month.

Another potential catalyst for Boeing is that Donald Trump plans to visit China in April to meet with Xi Jinping. Trump has always been a transactional person, and China will be keen to please him.

Therefore, there is a likelihood that Beijing will commit to making huge purchases from the United States. While agriculture will be discussed, there are chances that Beijing will ask its airlines to make huge orders from Boeing.

Such a move will be important for Boeing as Chinese companies have largely stayed on the sidelines since the US started a trade war with China during Trump’s first term.

Trump has brokered many Boeing orders in the past. For example, he received orders worth billions of dollars during his trip to the Middle East last year. These orders came from companies like Emirates, Qatar, and Saudia.

Boeing is making progress as the turnaround continues 

Meanwhile, Boeing is making substantial progress as the management executes its turnaround strategy.  For one, the safety issues that plagued the company have now ended as no jet has been involved in a Boeing-caused accident in the past few years.

The company has also started increasing its 737 MAX production, a trend that the management believes will continue in the foreseeable future.

Financial results released recently showed that the company’s revenue increased by 57% to $23 billion, while its annual total rose by 34% to over $89 billion. 

The company also made a big profit during the quarter, with the net earnings rising to over $8.2 billion. Its operating cash flow rose to over $1.3 billion.

Wall Street analysts are optimistic that Boeing’s business will continue doing well this year. The average estimate is that its revenue will come in at $22 billion this quarter, up by 13% YoY, while its revenue in the next two financial years will be $97 billion and $111 billion, respectively.

Boeing stock price technical analysis 

The daily timeframe chart shows that the Boeing share price has recovered in the past few months, moving from a low of $176 in November to a high of $254 in January.

It has retested the key support level at $228, completing a break-and-retest pattern, a common bullish continuation sign.

The stock remains above the 50-day and 100-day Exponential Moving Averages (EMA), while the Relative Strength Index (RSI) has moved to over 50.

Therefore, the most likely scenario is where it rebounds in the coming weeks and retests the important resistance level at $254. A move above that level will point to more gains, potentially to $300.

The post Boeing stock price eyes a rebound as a new $80 billion tailwind emerges appeared first on Invezz

Affirm stock price continued its recent downward trend after the company published its financial results on Thursday. AFRM moved to a low of $56, down by 40% from its highest level in 2025. It has dropped to its lowest level since June 5 last year.

Affirm stock drops after earnings 

Affirm, a key player in the Buy Now, Pay Later (BNPL), published strong results that were much higher than what analysts were expecting, confirming that demand for its services was strong.

These numbers came as recent macro data by the Commerce Department showed that retail sales continued rising despite the ongoing inflation concerns in the country. Another report released in January showed that US consumer confidence rebounded, while holiday sales rose by 3.4%.

Affirm’s report showed that its Gross Merchandise Volume (GMV) jumped to $13.8 billion in the second quarter of FY’26. Its active customers rose by 23% to over 25.8 million, while the number of transactions per customer rose by 20% to 6.4.

These numbers led to a 30% jump in its revenue, which moved to $1.13 billion, higher than the median estimate of $.1.11 billion. 

Affirm benefited from the rising consumer spending and the fact that its business model is usually friendly to customers as they have a chance to split their bills and pay no interest.  Most importantly, the company has deals with some of the biggest retailers in the United States like Amazon and Walmart, giving it access to millions of customers a year.

The company has continued adding merchants, who are keen on attracting more shoppers. Its merchants jumped by 42% to over 478,000.

Therefore, Affirm stock price retreated because of a slight increase in delinquencies. Its 30+ day delinquencies, excluding Peloton, increased 18 basis points YoY.  This performance led to a higher credit loss than expected.

Affirm’s growth to continue 

Looking forward, there are signs that Affirm’s business will continue doing well in the coming months as demand for BNPL solutions continues rising in the United States.

The average estimate among analysts is that its third-quarter revenue will be $977 million, up by 24.8% YoY. Odds are that the final figure will be higher than that as the company’s guidance is for its revenue to be between $970 million and $1 billion. Affirm often tends to be highly conservative when making its guidance.

The annual revenue for the current fiscal year is expected to come in at $4.07 billion, up by 26% YoY, followed by $5.7 billion. Its EPS is expected to be $3.25 this year followed by $3.7 in the following year. 

Affirm share price technical analysis 

The daily timeframe chart shows that the AFRM stock price has come under pressure in the past few months, moving from a high of $100 in August to a low of $56 today.

The stock is about to form a death cross pattern, which happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other.

Affirm has also moved below the 50% Fibonacci Retracement level at $61, while the Relative Strength Index (RSI) moved close to the oversold level of 30.

Therefore, the most likely Affirm stock forecast is where it continues falling, potentially to the 78.6% retracement level at $38.85, and then resumes the uptrend later this year.

The post Affirm stock price falls as credit losses jump: is it a good buy today? appeared first on Invezz