Affirm, a financial services company (AFRM), had a difficult day of trading last Tuesday. It turned things around with its overnight performance and continued that momentum for the next few days. A number of new features were introduced by the company, which should be appealing to customers. I am positive about Affirm because it embraces the reason behind these features.

It has been a failure for the majority of 2018, until recently. It had been trending upwards throughout much of the early 2021. On February 10, it hit $139.99, which was its closing high. Affirm stock began a steep plunge the next day that would continue until March 7. After that, it bounced back slightly and dropped. It gained again but then fell once more. Affirm stock was unable to reach $60 per share for most of May. The stock fell to the bottom until August 27, when an enormous spike occurred, which pushed the company up enough that it is now challenging February’s highs. TipRanks shows Affirm stock charts.

These new features are attracting a lot attention. The company has added a debit card option to its accounts. Although it’s only a minor step, this is a very useful move. The value of debit cards has been proven over time to be very useful. Anyone offering checking or savings products will need one in order to maintain interest.

Perhaps the most surprising feature is probably the second. The company now allows customers who have savings accounts to buy or sell crypto directly from their accounts. Affirm has been able to compete with companies such as PayPal (NASDAQ) who offer crypto buying options directly from their accounts. Affirm describes the feature as “new” and is expected to be available soon. It’s unclear which of over 6500 cryptocurrency can be purchased or sold through Affirm.

Wall Street Take

Wall Street consensus analysis calls Affirm a “Moderate Buy”. Affirm holds that rank since February 2021, the date of the initial plunge. Of the 11 Wall Street analysts with 12-month price targets on Affirm in the last three months, six of them consider Affirm a “Buy.” Four, meanwhile, call it a “Hold” and the remaining one is a “Sell.”

Affirm’s average price target is quite broad. Current average target price is $121.40 per Share, with a maximum of $150 and minimum of $65. That’s an upside potential around 3.01% based on Affirm’s latest price of $117.85

Are You Too Late or Comeback?

Affirm is happy with the news. Affirm needs some positive news following its 2021 experience. Affirm’s product lines are expanding is an excellent way to retain current customers. This helps to attract new customers. Affirm needs to take precautions in order to retain its client base due the number of rivals.

It is an important step in the right direction, but it will not be as successful as PayPal’s. According to last reports, PayPal customers can only buy one of four cryptos. This is great, however, with the 6,496 other coins being completely ignored, it only has so much impact. Affirm could be doing well if it opens the floodgates to allow access to the larger stock.

Max Levchin of Affirm, CEO, says that it may not be possible to buy in on sub-penny cryptocurrency investments. “We are doing it in a way that feels natural to us. We will make it really simple, it’s safe, we won’t let you do crazy things.” “Crazy things,” sadly, will probably include “buying any cryptocurrency that isn’t being bought already by institutional investors.”

This is worse because it happens at a moment when some major financial players are already targeting Affirm’s existing business. Mastercard (NYSE -) has recently revealed that it is joining the “Buy Now, Pay Later” (BNPL) revolution. It allows retailers to easily finance their products. Mastercard’s entrance into this space is what drove the majority of Affirm’s trading success yesterday.

The Final Views

Affirm knows exactly where it is in this situation, and that’s the greatest news. It seems that it does. It’s experimenting with cryptocurrency to try new things. This comes at a time where major financial institutions are struggling to eat their lunch in BNPL. It’s an encouraging development.

This stock trades very close at its consensus price target. Affirm is attractive because it has such an accurate view of its own future. Affirm is able to respond appropriately to changing market conditions. This makes it much more probable that Affirm will be able to make a move for higher shares. Affirm may be an excellent investment. Three months ago, it was a great idea.

Disclosure: Steve Anderson didn’t hold any positions in the securities listed in this article at the time it was published.

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