RJ Hamster
Porter & Company
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| Sponsored content from Porter & CompanyYou can feel it, can’t you?Something big just broke…Not the stock market, not the banks… something deeper.The numbers say everything’s fine… but it doesn’t feel fine, does it?The cost of living keeps rising. The divide keeps widening. The anger keeps building.Listen, I’ve spent three decades studying financial systems, and I’ve never seen pressure like this. It’s as if the old order of the economy has cracked and something new is forcing its way through.Most people can’t see it yet. But they sense it. They feel it in their gut.I’ve pulled on that thread for the past year, and what I’ve uncovered is bigger than anything I’ve ever reported. And it’s happening much faster than anyone imagines.I explain everything in my new documentary.➡ Watch it here before it’s too late for you. Good investing,Porter Stansberry This Week’s Bonus ContentAffirm Just Crushed Earnings—But Can It Outrun Klarna’s Scale?Author: Leo Miller. Originally Published: 11/21/2025. Quick LookAffirm’s latest earnings crushed Wall Street expectations, leading shares to soar.The company’s renewed partnership with Amazon helps to stem Klarna-related fears.Rather than picking one or the other, analysts are optimistic about both AFRM and KLAR going forward.In the buy-now-pay-later (BNPL) space, Affirm (NASDAQ: AFRM) has established itself as a leader. It is growing faster than other key players such as Klarna (NYSE: KLAR) and has partnerships with major retailers like Amazon.com (NASDAQ: AMZN). Below, we’ll review Affirm’s latest earnings and compare it with Klarna to provide an updated outlook on the stock.Affirm Shows Broad-Based Strength, Shares GainIn its latest quarter, Affirm reported revenue of $993 million, up 34% and well ahead of the $882 million consensus (26% growth). The top-line beat helped the company deliver adjusted earnings per share of $0.23, more than double the $0.11 analysts expected. Gross merchandise value (GMV), a key measure of the total value of transactions on Affirm’s platform, rose 42% to $10.8 billion, accelerating from 35% growth a year earlier.Why I’m avoiding Nvidia (and buying these 3 AI stocks instead) (Ad)Everyone’s buying Nvidia. The financial media can’t stop talking about it. Your neighbor probably owns it. That’s exactly why I’m looking elsewhere. See, when everyone piles into the same trade, the easy money is already gone. The real profits come from finding what the crowd is missing.Click here to get your free copy of this reportRevenue less transaction costs (RLTC) jumped 60%, outpacing revenue growth and signaling improved margins. RLTC as a percentage of GMV increased 48 basis points to 4.2% — one of the company’s principal profitability metrics that shows how much it retains after transaction costs per dollar of GMV. The 4.2% result sits above Affirm’s long-term target range of 3% to 4%.The Affirm Card continues to gain traction: Card GMV climbed 135%, materially contributing to overall growth. The company’s 30-day delinquency rate remained healthy at roughly 2%–3%, essentially unchanged from a year ago, indicating customers’ ability to make payments has not deteriorated. Shares rose more than 11% on Nov. 7 after the results were released.Affirm vs. Klarna: Two Different Flavors of BNPLWith Klarna now public, investors are weighing which BNPL name offers a better investment. A look at their recent financials highlights some clear differences. Klarna grew GMV 25% last quarter (23% on a like-for-like basis). By that measure, Affirm is growing substantially faster and gaining share.Still, Klarna’s overall GMV remains roughly three times larger than Affirm’s — about $32.7 billion. That scale raises the concern that Klarna could become the default BNPL option for consumers and merchants, which could pressure Affirm’s long-term growth.Affirm strengthened its position by renewing its partnership with Amazonthrough January 2031, securing an important source of volume and keeping Affirm integrated with one of the world’s largest online retailers. The agreement is not exclusive, however, and Amazon could add other BNPL options, potentially diluting Affirm’s volume.Another key difference is product mix. Despite much higher GMV, Klarna generated $903 million in revenue last quarter — about $30 million less than Affirm. That reflects Klarna’s heavier use of zero-interest loans; by contrast, 72% of Affirm’s transactions last quarter were interest-bearing. It’s unsurprising that Klarna’s GMV is larger given the consumer appeal of 0% interest financing.Affirm’s model is delivering stronger profitability today: it posted an adjusted operating margin of 28% last quarter. Klarna, meanwhile, is focused on building a large consumer/merchant ecosystem and plans to improve profitability over time; its adjusted operating margin was -1.5% last quarter. These divergent strategies make it difficult to declare one approach definitively superior — both could succeed, though both firms share the same key risk: an economic downturn that impairs consumers’ ability to repay loans.Wall Street Sees Significant Upside in AFRM and KLARWall Street analysts appear bullish on both names. The MarketBeat consensus price target for Affirm is just under $87, implying roughly 32% upside; analysts who updated targets after earnings average over $89, implying about 36% upside. The consensus target for Klarna $49 suggests around 54% upside. After Klarna’s earnings, Bank of America lowered its target to $46, which would still imply nearly 45% potential upside from current levels. |
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