“The American consumer is alive and well” – Affirm CEO says market turmoil has no impact on business
Affirm Holdings Chairman and CEO Max Levchin told CNBC that despite the market’s poor performance this year, U.S. consumers — and Affirm’s customers — are spending healthily.
“The American consumer is alive and well. They shop, they buy, they pay off their loans, at least to say pretty well. have a real impact on our underlying business which is working really, really well,” Levchin said in a Thursday night interview on “Mad Money.”
Shares of Affirm rose more than 20% to around $22.50 on Friday, the day after the lender’s latest quarterly earnings report to pay later posted a smaller-than-expected loss. Affirm also exceeded high-level estimates and said it was expanding its partnership with Shopify.
“We’ve been the partner of choice, if you will, for all of these really, really big companies that power American e-commerce and we’ve done well there. That’s where all of our growth has come from, though. , we also have a growing program…a self-service merchant,” Levchin said, noting that Affirm also has partnerships with Walmart and Amazon.
Affirm opened Friday near $25 per share. But it’s still down 85% from its all-time high of $176.65 in November.
Affirm has not yet released its full-year 2023 outlook or full-year guidance. He plans to provide those numbers in the company’s next earnings report.
Still, Levchin, the founder of Affirm, seemed optimistic about the company’s growth prospects.
“Some of our competitors have just posted their 15% annual growth rates, some of them are not public, so I don’t really know. You can see from my numbers that we’re doing well very well and we’re doing it with really, really high quality revenue, a really good economic year,” he said. “Everyone should switch to buy now, pay later.”