Why It’s Time to Buy the Dip in Affirm Stock

Affirm's stock has experienced significant fluctuations in 2026, climbing over 61% from its 2026 lows while still lagging behind the year with an 8.6% decrease. After hitting its 2026 highs in a recent quarter following strong earnings, the stock has since shed nearly a quarter of its market capitalization. Affirm's gross merchandise value (GMV) rose 36% year over year in Q2, marking the 11th consecutive quarter with growth over 30%.

Active consumers increased by 21% to 27.8 million, and active merchants on its platform climbed by 50%. Transactions per active customer reached 7, a 20% increase from the previous year. The company's GMV surpassed $50 billion last fiscal year and is projected to reach at least $64 billion by year-end. Affirm's earnings and guidance beat market expectations, prompting several brokerages to raise their target prices.

Analysts generally view Affirm's stock favorably, with 26 analysts rating it as a Strong Buy and 2 as a Moderate Buy. The mean target price is $99.48, 46% higher than the current value. Affirm's growth trajectory and profitability have been solid, with a strong growth runway ahead. The company is still present in less than a third of the top 250 e-commerce sites and is expanding into new markets, including the U.K. and Australia.

While Affirm presents a favorable growth story, investors should be aware of potential risks, such as U.S. interest rate hikes and possible deterioration in customer financial health.