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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 +3.11% are surging more than 18% in Monday trading after Square Inc. /zigman2/quotes/205989440/composite SQ +3.53% announced its plans to purchase BNPL rival Afterpay Ltd. /zigman2/quotes/217294872/composite AFTPY +3.53% /zigman2/quotes/207831648/delayed AU:APT -2.70% 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 +2.70% , 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 +11.29% , 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
$ 160.04
+4.83 +3.11%
Volume: 11.41M
Oct. 25, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$43.19 billion
Rev. per Employee
$530,447
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/zigman2/quotes/205989440/composite
US : U.S.: NYSE
$ 262.00
+8.94 +3.53%
Volume: 5.73M
Oct. 25, 2021 4:01p
P/E Ratio
232.21
Dividend Yield
N/A
Market Cap
$116.91 billion
Rev. per Employee
$1.73M
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/zigman2/quotes/217294872/composite
US : U.S.: OTC
$ 95.76
+3.26 +3.53%
Volume: 40,020
Oct. 25, 2021 3:54p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$27.39 billion
Rev. per Employee
$530,579
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/zigman2/quotes/207831648/delayed
AU : Australia: Sydney
$ 122.60
-3.40 -2.70%
Volume: 1.00M
Oct. 25, 2021 4:10p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$36.57 billion
Rev. per Employee
$711,285
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/zigman2/quotes/208054269/composite
US : U.S.: Nasdaq
$ 246.88
+6.48 +2.70%
Volume: 22.93M
Oct. 25, 2021 4:00p
P/E Ratio
60.31
Dividend Yield
N/A
Market Cap
$282.48 billion
Rev. per Employee
$808,830
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/zigman2/quotes/227203754/composite
US : U.S.: Nasdaq
$ 28.28
+2.87 +11.29%
Volume: 7.88M
Oct. 25, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$13.71 billion
Rev. per Employee
$570,318
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