money Lender Affirm soars in public debut: Here's how the stock is doing
Yahoo Finance breaks down the details for the online lender Affirm IPO.
Video Transcript
ZACK GUZMAN: As we covered the last year, the IPO market was hot. And this year, it looks to be another hot start, with payment platform Affirm opening for trade just moments ago at $90.90, well above the price that we saw shares in that IPO priced at $49 a share. You can see there a potential doubling shaping up for Affirm right now.
And Akiko, as we highlighted last year, we saw the highest number of shares-- of companies, rather, doubling on day one of trading that we've seen since the tech bubble last year. And right now, I mean, when we see Affirm, the enthusiasm clearly there for a company that had posted meaningful revenue growth, as well as a shrinking loss, which seems like to be the theme continuing over, that that's really what investors are looking for.
AKIKO FUJITA: Yeah, it does feel like we're sort of picking back up where we left off back in 2020, when you look at the price performance, at least on the first day. Affirm, of course, a company that many of our viewers may be very familiar with, especially given the activity that we have seen in e-commerce or the buy now pay later online lender founded by the former co-founder of PayPal, Max Levchin.
Looking at where prices are right now, of course, we saw it priced at $49 a share there. That was above the initial target range. So it feels like we're kind of seeing the same story unfold here, as we did see at the end of the year with the names like a DoorDash or an Airbnb. 93% jump, as you point out, in revenue in the last fiscal year.
We should note, there's so much attention on this one, because we've still got a long pipeline here coming into 2021, in terms of companies that will be coming to market, this potentially an indicator of where the appetite is for some of these names.
Other names we're going to be looking at here, Poshmark, another one that's coming to market, Petco Animal Supplies, mobile game developer, Playtika Holdings. There is a long list here. And it feels like we're sort of picking back up there, at least in the initial day, more than 80%, but certainly a very significant one for this company.
ZACK GUZMAN: And we'll see where it closed. But it seems like based off of the initial moments of trading here, that it could be shaping up for that coveted doubling, at least there right now. And we saw even the range being raised too. It's another one of those themes where, all right, doubling on day one is good, but especially strong when you consider that the initial range was $33 to $38 in that IPO listing.
They bumped that up to $41 to $44 before we saw that priced at $49 a share. So it wasn't as if-- this is not just a double alone. It's doubling above two price range increases as well. So we'll see what happens. Poshmark, clearly to carry on this theme, going to have a bit of a high hurdle mark here to top once we get that listing tomorrow. But of course we'll cover that as well in our hours.
AKIKO FUJITA: Yeah, and I think there's going to be questions moving forward, like so many of these platforms who've really seen growth along with e-commerce, how sustainable that growth is going to be. And so that's a name we'll be watching very closely moving forward.
