PreMarket Prep Stock Of The Day: Affirm's Q3 Earnings Rip
When a stock has been on your "buy" radar and has been going straight down for months, it's hard to pull the trigger to get long.
On the other hand, when the stock puts in a potential bottom and then explodes after an earnings report, the question is whether to chase it higher, wait for a pullback, or even fade the pop.
That's the exact scenario investors were faced with on Friday with Affirm Holdings Inc. NASDAQ:AFRM, which is the PreMarket Prep Stock of the Day.
Affirm's Fall From Grace: It is hard to believe that Affirm Holdings made its all-time high in November at
In Thursday's session, the issue bottomed at
Affirm's Q3 Report: After the close on Thursday, the company reported quarterly losses of
This is an 82% increase over losses of
Affirm raised guidance for fourth-quarter sales to
Finally, Affirm reported the extension of a multiyear exclusive partnership with Shopify Inc. NASDAQ:SHOP.
What To Do?
Udall was keeping an open mind on Affirm stock in Friday's session. While the issue was being discussed, it was already trading higher by
Udall was asked how he was approaching the issue in Friday's session.
"You can try and buy it up here, but you have to be prepared to stop yourself out, assume the loss and not be upset."
AFRM Price Action: After a much higher open (
The stock ultimately closed Friday's session 31.43% higher at
The full discussion with Udall from Friday's broadcast can be found here. In addition, Udall added commentary on several other issues including Marqeta Inc. NASDAQ:MQ, Block Inc. NYSE:SQ and PayPal Holdings Inc. NASDAQ:PYPL.
Photo courtesy of Affirm.