Affirm shares rally after partnership announcement with Target đ
Thursday, 7th October 2021 by Gotrade
Hey Gotraders,
Tisâ the season to be jolly, la la la⌠đ
Yes, the holiday season is just a few weeks away! Companies are starting to look for ways to boost their revenues during this festive period.
Target (TGT) just announced that they will be partnering with Affirm (AFRM), the âbuy now, pay laterâ company, to offer buy now, pay later services to Target customers who spend a minimum of $100 as they gear up for the holiday season.
Target published a blog post saying that it will also be offering buy now, pay later services from a smaller rival of Affirmâs - Sezzle.
âWe know our guests want easy and affordable payment options that work within their familyâs budgetâ - Gemma Kubat, Targetâs President of Financial and Retail Services.
What are âbuy now, pay laterâ services (BNPL)? BNPL services are installment loans that retailers offer to their customers upon checkout. It allows the customer to break up their purchase into multiple, smaller amounts rather than paying the full amount upfront. BNPL services usually come with no interest fees.
Why is this important? The BNPL market is growing very quickly. There has been several new entrants to this market this year itself. Square (SQ) bought Australiaâs Afterpay for $29 billion in the largest tech deal of the year.
In the case of Affirm, they are expanding very rapidly. Affirm announced a partnership with Apple (AAPL) earlier in August to offer BNPL services for its iPhones, iPads and Macs. Affirmâs most recent (and significant) announcement came in late August, when they announced a partnership with Amazon (AMZN). This was a huge deal as Affirm became Amazonâs first third-party provider of installment loans.
Affirm went public in January at $49 a share, and its stock price has since jumped by over 150% to $133.70 as of yesterdayâs close. Shares rallied 19.95% yesterday itself! The company is now worth over $35 billion.
đ Twitter is up over 2% higher after announcing sale of MoPub mobile ad network đ
Twitter (TWTR) announced that it would be selling its MoPub mobile ad network to game developer and ad-tech company AppLovin. The price tag on this sale is a whopping $1.05 billion in cash. Twitter bought MoPub for about $350 million in September 2013. Thatâs a nice huge return-on-investment Iâd say! đ°
âThis transaction increases our focus and demonstrates confidence in our revenue product roadmap, accelerating our ability to invest in the core products that position Twitter for long-term growth and best serve the public conversationâ - Jack Dorsey, CEO of Twitter.
Shares of Twitter closed 2.39% higher for the day, at $61.29.
đ Levi Strauss beat analystsâ expectations đ
Guess who just announced earnings and beat analystsâ expectations? Levi Strauss (LEVI)! Sales were boosted by shoppers looking for the latest denim, as well increased demand during the back-to-school season. They reported earnings of 48 cents per share on $1.5 billion revenue beating expectations of 37 cents per share on $1.48 billion revenue. Well done!
Shares of Levi closed the day 5.13% lower but are up over 4.3% in extended trading at the time of writing. Shares are currently trading around $25.29 in extended trading.
Top movers & shakers đ˘
What else is making headline news đ°
Bitcoin jumps to nearly 5-month high, topping $55,000 on Wednesday.
McDonaldâs (MCD) announces big changes to menus and restaurants to 'look after the planet.'
Uber (UBER) can now track your flight so a ride home is ready when you land.
Hacker breaches Amazonâs (AMZN) Twitch video site, exposing future product plans.
Dow futures jump 270 points in relief rally as it appears Congress will avert a government default.
Home Depot (HD) hires Walmart (WMT) delivery drivers to drop off paint and more to customersâ doors.
CNBC Pro: Cramer says to buy tech stocks on dips as the market tries to find support.
General Motors (GM) says it will double annual revenue by 2030 to $280 billion in a digital push to be seen more like Tesla (TSLA).
Popular companies releasing earnings this week đ°
Thursday: Conagra (CAG), Lamb Weston (LW), Tilray (TLRY)
A companyâs market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts' speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity since better-than-expected figures could cause a companyâs stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
Thatâs all from us for now.Â
Signing out,
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The legal stuff đ¤
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