Shares of Affirm Holdings Inc. surged in the company’s trading debut Wednesday.
The buy-now, pay-later fintech firm, trading on the Nasdaq under the symbol AFRM, jumped above $99 shortly after it began trading around midday, far above its initial offering price of $49.
The enthusiastic reception for Affirm shares could indicate that 2021 will be similar to 2020. That was the most lucrative year on record for public offerings in terms of money raised, driven in part by the success of companies like DoorDash Inc. that have benefited from the stay-at-home economy. Markets overall finished the final months of 2020 strong, in part on hopes that a coronavirus vaccine and government stimulus will boost the economy.
Affirm allows online shoppers to pay for purchases in installments, and it finances products including Peloton Interactive Inc.’s stationary bikes. Merchants ranging from Walmart Inc. to Expedia Group Inc. offer customers the opportunity to finance through Affirm. It and similar firms including Afterpay Ltd. and Klarna Bank AB have benefited mightily during the pandemic, since many consumers are reluctant to take on credit-card debt.
Write to Orla McCaffrey at [email protected]
