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

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.

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Add to watchlist AFRM

Affirm Holdings Inc. Cl A

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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Square Inc. Cl A

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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Afterpay Ltd. ADR

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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Afterpay Ltd.

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

/zigman2/quotes/208054269/composite

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PayPal Holdings Inc.

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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Marqeta Inc.

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