Affirm Stock Gains as Wells Fargo Names “Fintech Fab 5” (AFRM, V, MA, TOST, ADYEN)

Affirm Holdings stock (NASDAQ: AFRM) has been given a boost from Wall St, being highlighted as one of Wells Fargo's “Fab 5 of Fintech.” The buy now, pay later (BNPL) company's stock ended Tuesday's session at $74.49, up 3.34%, and is 1% higher in the pre-market session.

The markets reacted favorably to Wells Fargo initiating coverage with an Overweight rating and an $89 price target. This endorsement places Affirm alongside Visa (V), Toast (TOST), Mastercard (MA), and Adyen (ADYEN), signaling confidence in its growth potential within the payments sector. The payments space has faced headwinds, including a rotation towards AI-centric stocks and instances of underperformance, but Wells Fargo believes Affirm stands out positively.

Affirm's recent performance has further bolstered its appeal. The company's fourth-quarter results exceeded expectations, with earnings doubling forecasts and revenue surpassing projections. This led to a 12% jump in the stock price and underscored record Gross Merchandise Volume (GMV) growth, strong margins, and optimistic fiscal 2026 guidance.

Affirm's strategic focus on 0% APR offers has been successful in attracting higher credit consumers, further contributing to investor enthusiasm. JPMorgan analyst Reginald L. Smith reiterated an Overweight rating, raising the price forecast from $91 to $94, citing record growth and stronger-than-expected guidance.

Partnerships Driving Growth

Partnerships are also driving Affirm's growth. Recent collaborations with Ace Hardware and ServiceTitan are expanding Affirm's reach and offering its flexible payment options to a broader customer base. The partnership with Ace Hardware, announced in September, enables customers to use Affirm for in-store purchases over $50 at more than 5,200 locations across the U.S.

Similarly, the multi-year partnership with ServiceTitan integrates Affirm's BNPL options into ServiceTitan's digital payments platform, providing flexible payment solutions to contractors and homeowners for home repair bills.

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