Affirm Holdings Inc (NASDAQ:AFRM) shares are volatile Tuesday after closing up 12% on Monday. The price action appears to be driven by reports of heavy use of “Buy Now, Pay Later” on Cyber Monday.
What Happened: U.S. Cyber Monday sales hit a record $12.4 billion, according to Adobe Analytics data reported by Reuters.
Adobe initially predicted a 6.1% increase in online consumer spending but raised its expectations to around 8% after seeing strong trends on Monday. Online spending outpaced the revised forecast and ended up coming in up 9.6%.
A record $940 million worth of purchases on Cyber Monday were made using “Buy Now, Pay Later,” representing an increase of 42.5% on a year-over-year basis. The number came in well ahead of forecasts from Monday, which were calling for about $782 million.
Jefferies analyst John Hecht upgraded Affirm from an Underperform rating to a Hold rating and raised the price target from $9.50 to $30.
Affirm offers a platform for digital and mobile first commerce, consisting of a point-of-sale payment solution, merchant commerce solutions and a consumer-focused app.
See Also: Biggest Cyber Monday Ever? Consumers Expected To Splurge $15M Every Minute: Here Are The Top-Selling Items
AFRM Price Action: Affirm shares were down .34% at $29.26 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Affirm.
