$AFRM Earnings Surge: Quick Market Reaction & Analysis

hello Traders today is August 28th 2024 I'm going to go uh over a firm's earnings and the only reason why I'm doing this is because their earnings were quite surprising keep in mind this is not Financial advice this is uh this content is for educational purposes only and if you find any utility on these videos please leave a comment uh like the video and subscribe to the channel so let's get into to this a firm is currently up almost 177% if we go down to the 4our Chart you can see where the price is which is at almost $37 that is pretty impressive it was a very nice move let's go to the week to the weekly chart and um right now you are right on this level where this uh little hand is and there's where the uh our green candle for earnings is so very impressive very sharp move uh which I'm not a big fan of because normally I would expect uh continuation to the downside but I think that 40 is in the Horizon and we might continue moving um into a higher levels uh there is a lot of um I think Catalyst that could actually help a firm uh continue moving uh towards um I guess higher numbers so I'm just going to go high level on what I know about earnings and then you know I guess finish the video anyways let's do earnings were um reported at a net loss um they actually report a net loss uh narrower that expected for the quarter ending uh in June 30th with a loss of uh 45.1 million or basically 14 cents per share against expectations of a much larger loss the revenue significantly uh bit estimates uh coming at $659 million against unexpected $65 million so um in other words Revenue was up and also um losses were down which is a good indication um I guess is a good indication especially on the revenue side um the the stock price reaction obviously we all saw it uh after earnings um took a or had a very substantial increase and after hours uh we went up as I was mentioning or we are up 17.16 right now um and I think a lot of that has to or is reflecting investor enthusiasm at least for now over the earning speed and you know in general news were pretty decent for a firm and the market is probably going to be um I guess um in on the side of uh companies that are on the bnpl sector especially if um interest rates go down uh the market sentiment in general affirm uh post earnings is uh quite positive investors and analysts are following on uh earning speed or focusing I'm sorry on speed and the company path towards uh Gap profitability J uh gaap profitability and uh the potential for um future growth in a more um favorable interest uh Ro environment which that is uh obviously as as for this type of uh companies and for this sector is basically um absolutely you know important and uh well that's what I I guess I have for the sentiment at least out of what I can think about um as far as analyst ratings um lately there has been an upgrade from uh b2a Securities uh to buy indicating confidence on a firm's future performance Colman Sachs also initiated a coverage with a buy rating highlighting a firms or a firm as a leader in the bnpl sector buy now pay a later sector that's what pnpl stands for um as far as social media what I can see and this is you can you can consider this uh anecdotal evidence maybe um that the expost uh reflect a lot of bullish sentiment with a lot of users highlighting earning speed potential breakdown or breakout from a downtrend which we are seeing on this chart right here uh we were completely going down and now we're seeing a recovery we're all the way up here as I was saying so uh people get very enthusiastic uh for that I personally don't like to see that kind of moves because then you see a catastrophe uh coming um pretty quickly let's take a look at Gava for example and then you know I I actually don't dislike this but you see this kind of situations here anyways let's go back to airm um so um I I wouldn't be surprised if there is a pullback within the next um a couple of weeks or a week um so at least that's what I might my own thought um and and again I guess that is that the caution that I would Express about um the stock and it's also what I think there is um I guess a little bit of um worry about um how overpriced the stock could be based upon on current earnings and the stock valuation you know I think it might be a little bit too high but um you never know in this type of market right now but um that would be my only concern right now the stock valuation uh in relation to the revenue of the company um so you know anyways um as far as what the or what the CEO uh statement was about um aiming for uh Gap profitability has um actually have a long-term um boost I guess for uh a firms confidence uh with many of the company seen as of the community I'm sorry not the company seeing this as a turning point for a firm especially with expectations of easing uh great environment uh which could benefit the bnpl um I guess uh sector so so I I think in general um we you know I I welcome the news for a firm I I'm not a a big fan of this sector I think it's predatory uh but it exists and it's there to stay I think and uh I do believe that um again my only caution for for anybody trying to trade this is an in my opinion now this is going to look pretty extended and it's going to have to breathe a little bit uh also before I forget there were some um Partnerships and uh expansion from a firm that has announced several Partnerships with um that have indicated growth in in this uh Merchant Network and service offerings uh which could drive future Revenue growth and then uh the consumer sentiment and data bridge that is another thing that I wanted to mention that could be a little bit dangerous for a company like a firm especially because they they handle a lot of personal data and there was a mention of a data Bridge affecting airm car card users uh which might introduce some uh as I'm saying caution into the sentiment that we're currently having for the stock um yet this hasn't um at least for now uh put a dent on the move again we're up 177% pretty impressive anyways uh my general take on this other than uh the facts that we are getting from earnings is that this already let's go to the 4 Hour chart uh looks pretty extended on the one uh on the day chart it's going to look uh pretty nasty tomorrow and what I think is that it might uh I don't know it might continue going up towards 40 My Level right here is 39 um 34 or 3930 let's say and and um so I wouldn't be surprised and we get a retest let's go to the one minute I want to see this level how old it is uh yep I wouldn't be surprised if we actually get a rejection from here and go down towards um at least 35 and then would be nice to see this climbing but you know um I do believe that a firm is going to greatly benefit from lower for obvious reason from lower um interest rates and that is actually going to push this sector um towards you know towards higher numbers or higher levels so um I'm not trading a firm um right now I I have I I was trading a firm I believe right on this move right here and then I left it alone anyways um but I do think that there is a there is definitely a possibility to go over 40 and continue going that way but the best thing that could happen in my opinion is to have by the end of the week a little bit of a cool down go back at least to 35 because now you're going to have a massive uh Gap in this area go back to 35 and then uh claim 40 and continue going up there's low liquidity in this area I think this could actually start moving pretty fast um it has done it before um and the new have this this level right here at 50 but let's focus on 40 for now and see what happens afterwards interesting uh uh pretty impressive earnings report from a firm I do believe that um again there is um more enthusiasm that uh caution I guess as a sentiment uh but just keep in mind the fact that um you know there could be bad news just like what I mentioned about uh data breaches and also uh there could be a little bit of um um in the near future uh talk about um the level of uh profitability of the company versus valuation of the company that's something that you have to keep in mind and um other than that pretty impressive move if you actually got into this and uh you're riding this wave I'm absolutely happy for you um other than that that's all I have right Traders bye-bye