Cramer Backs Affirm as Only Buy, Says $77 Stock Should Hit $100
Updated
Updated · Yahoo Finance · Aug 22
Cramer Backs Affirm as Only Buy, Says $77 Stock Should Hit $100
1 articles · Updated · Yahoo Finance · Aug 22
Summary
Affirm was the only stock Jim Cramer said he would buy "right here," arguing the buy-now-pay-later lender has the growth profile and leadership he wants.
Max Levchin's company is still trading around $77, well below Cramer's earlier $100 target, even as he said short sellers and skeptics misunderstand the business.
35% GMV growth, 41% revenue-less-transaction-cost growth and 22% active-customer growth underpin the bullish case, with Affirm's point-of-sale data helping it manage defaults.
A forward P/E of 39.84 leaves little room for error, though, and the company remains exposed to consumer spending, interest rates, inflation pressure and private-credit funding costs.
Cramer contrasted that setup with Salesforce, down 17.5% year to date, where fast Agentforce growth still contributes only a small share of overall revenue growth.