I need a reply to the discussion below. the reply must be at least 250 words. Do not just say “good job” or “I learned something from your post.” Replies are not a cheering exercise. Instead, your rep

I need a reply to the discussion below.

the reply must be at least 250 words. Do not just say “good job” or “I learned something from your post.” Replies are not a cheering exercise. Instead, your replies must be substantial, reflecting what you learned from reading the post, offering an extension, or correcting a mistake. Use what you learned in researching for your post (or knowledge gained from other classes or personal experience) to either supplement or critique the post you are writing about

Affirm’s Initial Public Offering (IPO)

          Affirm, legally Affirm Holdings, Inc. is a publicly traded financial technology company headquartered in San Francisco, United States. Founded in 2012, the company operates as a financial lender of installment loans for consumers to use at the point of sale to finance a purchase. It is an online payment platform privately valued at one billion and five hundred million in the year 2020. Affirm’s shares started trading on Nasdaq on January 3rd 2021 as AFRM in terms of ticker symbol. Majority of the firm’s revenue come from Peloton. The firm’s shares were priced at forty-nine dollars, a piece above the prospected range of forty-one to forty-four dollars for each share. The company share rose up to 98% in its public offering starting what would be a hectic market debut season. The stock trading kicked off at ninety dollars and nine cents for each share and ninety dollars and twenty-four cents marked the closing stock (Fox et al., 2020). The firm had previously priced it share above the targeted range of between forty-one dollars to forty-four dollars and priced the shares at forty-nine dollars.

             The company has prominently continued to employes buy now pay later policy that allows for loans on point of sales. The firm’s consumers are not charged either late, service, nor payments. Affirm enables their customers to buy online products with a provision to pay later on monthly installments but compounding interests are not accrued. The company operates with over six thousand retailers including Walmart, Peloton as well as Wayfair retailers. The firm cooperates with major corporations and assist them advertise the merchants which earn additional revenues if they provide an additional means of payments at check out. The strategy assists the corporations to achieve revenues up to about eighty-five percent, as price in additional to more twenty percent repetition of purchases. The company stated that it took them over six million people in the update of its initial public offering (IPO) (Rubini, 2018). In 2020, so as to enable merchants to offer installment loans on product they offer, affirm formed a partnership with Spotify.

            For the fiscal year that closed on June 30th 2021, the firm generated approximately five hundred and ten million dollars in revenue, over ninety percent rise from 2020, relation to the firm’s fillings. In the third quarter of 2020 the firm’s revenues rose to above ninety-seven percent year over year, and a fall of net losses by around half to reach fifteen million and three thousand dollars. The company makes and generates income by assisting investors in scale making (Fox et al., 2020). Other source of revenues for Affirm is through interest earned from bank loans as well as some loans to consumers. Affirm as opposed to other contemporary initial public offers net losses are easily under control. The firm in the 2020 fiscal year, reaped one hundred and twelve million and six hundred thousand dollars, a fall from 2019’s one hundred and twenty million, five hundred thousand dollars.

In conclusion, Affirm’s initial value was correct since the company was able to sell its initial public offering (IPO). The company was able to sell their shares on initial public offering generating revenues that allowed for expansion of its operation. The share sold above the targeted prices accounted for the profits increase by about a hundred percent and accounted for decrease of losses by about half (Fox et al., 2020). The company shares were also bought completely by people considering them cheaper and viable according to the prices at the opening of the stock market.







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