Having pushed back on the Buy-Now-Pay-Later hype in our initial work on Affirm back in early March, we believe a meaningful share of the expected downside in the stock has now been realized and we are covering our short recommendation based on repriced expectations and an array of positive catalysts which have now come to the forefront, namely the ramping of its Shopify agreement, new merchant wins and products (i.e. the Affirm Debit Card), and a large, resurging travel opportunity through merchants like Expedia, Delta, American Airlines, and Vrbo.
We will continue to watch the BNPL space, particularly as competition continues to heat up and Affirm's value proposition is tested.