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Affirming Market Conditions

Happy Thursday Coachmen! After a mixed three days of trading throughout this week, we have another issue jam-packed full of the knowledge you need to take on the markets today!


“All our dreams can come true, if we have the courage to pursue them”

- Walt Disney


Market Talk

Markets were largely green throughout yesterday’s trading session with the DOW rising 18bps, the NASDAQ up by 41bps, and the S&P climbing 29 bps, while the VIX fell by 5.35%. In terms of today’s agenda, the real GDP revision (seasonally adjusted) came in at -0.6% compared to an expected -0.5%, continuing jobless claims were 1.42M compared to the previous 1.43M, and initial jobless claims were 243K compared to an expected 255K. The markets are waiting patiently for the litany of data sets to be released tomorrow (you can find the full list here), and a speech from FED chair Jerome Powell.


Long: Affirm Holdings Inc (AFRM-NASDAQ) | Timeline: 2 day

Affirm Holdings (AFRM) is one of the largest players in the Buy Now Pay Later space, which is known for helping consumers purchase pricey items through a fixed-rate installment program. The company is likely to report lowered guidance for the remainder of the year, however, we believe that analyst expectations are too bearish. The current expectations for the company place EPS at -$0.53, and revenues at $355.75M, in contrast, the previous quarter’s report posted an EPS of -$0.19, and revenues of $354.76M. Our doubt in the bearish market estimates arises from recent trends in the US consumer market. Credit card debt amongst Americans continues to soar, and especially as broader financial conditions continue to weigh on the average consumer many have been and will be driven towards BNPL companies such as Affirm in order to afford the products they desire. After trading below all moving averages for multiple months Affirm managed to find its legs in late July of this year and has since been trading between the 50-day, and 200-day MA’s.


Chart of the Day: Global Inflation Rates...

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