Fintech services platform provider Affirm Holdings’ (AFRM) stock price has soared 61.3% over the past month thanks to the company’s strategic collaboration with Target (NYSE:TGT). However, given the intensifying competition in the buy-now-pay-later space, can the stock continue rallying? Let’s discuss.Financial technology company Affirm Holdings, Inc. (AFRM) in San Francisco builds next-generation digital and mobile-first commerce platforms in the United States and Canada. With Target Corporation’s (TGT) recent announcement that the retailer will allow its customers to make purchases via AFRM’s buy-now-pay-later (BNPL) technology, AFRM’s shares have climbed 19.8% in price over the past five days and 61.3% over the past month.
However, the fast-growing buy-now-pay-later industry has been facing challenges related to payment default and intense competition. As people worldwide have become increasingly attracted by the BNPL services amid the pandemic, several companies have entered this space.
Although AFRMs’ rapidly expanding network could help it grow its customer base, its lofty valuation is not in sync with its growing operational losses.