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Aug. 2, 2021, 12:13 p.m. EDT

Affirm stock rockets after Square announces $29 billion deal for rival Afterpay

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By Emily Bary

Shares of buy-now pay-later (BNPL) company Affirm Holdings Inc. /zigman2/quotes/223715966/composite AFRM +20.77% are surging more than 18% in Monday trading after Square Inc. /zigman2/quotes/205989440/composite SQ +6.50% announced its plans to purchase BNPL rival Afterpay Ltd. /zigman2/quotes/207831648/delayed AU:APT -2.18% for a 31% premium in a vote of confidence for the payment trend. The deal is valued at $29 billion. Afterpay and Affirm are among companies offering financial technology that lets consumers split their purchases into installments in a break from the traditional credit-card model of compounding interest. Some BNPL products are interest-free, while others carry simple interest. Affirm's stock "will now include an M&A premium," Bernstein's Harshita Rawat wrote in a note to clients. In her view, the deal announcement translates to a negative read for PayPal Holdings Inc. /zigman2/quotes/208054269/composite PYPL +4.84% , which also has expanded into BNPL and is seeing a 0.2% drop in its stock during Monday's session. She saw a positive read through for Marqeta Inc. /zigman2/quotes/227203754/composite MQ +7.40% , which works with both Afterpay and Square on debit-based products, though Marqeta shares are off 0.4% in Monday trading.

/zigman2/quotes/223715966/composite
US : U.S.: Nasdaq
$ 21.40
+3.68 +20.77%
Volume: 13.37M
Feb. 2, 2023 10:49a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$5.14 billion
Rev. per Employee
$564,863
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/zigman2/quotes/205989440/composite
US : U.S.: NYSE
$ 89.35
+5.45 +6.50%
Volume: 4.27M
Feb. 2, 2023 10:49a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$50.18 billion
Rev. per Employee
$1.99M
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/zigman2/quotes/207831648/delayed
AU : Australia: Sydney
$ 66.47
-1.48 -2.18%
Volume: 0.00
Jan. 19, 2022 4:10p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$19.97 billion
Rev. per Employee
N/A
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/zigman2/quotes/208054269/composite
US : U.S.: Nasdaq
$ 86.92
+4.01 +4.84%
Volume: 4.71M
Feb. 2, 2023 10:49a
P/E Ratio
44.10
Dividend Yield
N/A
Market Cap
$94.52 billion
Rev. per Employee
$865,405
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/zigman2/quotes/227203754/composite
US : U.S.: Nasdaq
$ 7.48
+0.51 +7.40%
Volume: 1.40M
Feb. 2, 2023 10:49a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.79 billion
Rev. per Employee
$712,643
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