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Klarna's exclusive partnership with Walmart has ended Affirm's loan installment services for the retailer, impacting its financial outlook. Goldman Sachs analyst Will Nance adjusted Affirm's price forecast to $56, citing lower-than-expected financial repercussions from the Walmart deal, which contributed less to Affirm's GMV and operating income than previously estimated. Affirm's strategic partnerships with Shopify and Amazon are expected to bolster its market position in the growing BNPL sector, despite heightened investor concerns over competitive pressures.
UBS analyst Tim Chiodo has maintained a Neutral rating on Affirm Holdings Inc. with a price target of $62, as the stock trades at $44.78. Despite impressive revenue growth of 46.27%, Affirm remains unprofitable, with significant exposure to Walmart, which accounts for about 5% of its Gross Merchandise Volume. The recent partnership between Walmart's OnePay and Klarna introduces competition, but Affirm's existing relationship with Walmart continues, while it also expands its offerings through partnerships with Shopify and StockX.
UBS analyst Tim Chiodo has reiterated a Neutral rating for Affirm Holdings Inc, maintaining a target price of $62, while the stock trades at $44.78. Despite impressive revenue growth of 46.27%, Affirm remains unprofitable, with significant volatility and competitive risks emerging from Walmart's partnership with Klarna for installment loan services. Affirm's transactions with Walmart account for about 5% of its gross merchandise volume, and the company continues to explore partnerships, including a recent collaboration with StockX.
UBS analyst Tim Chiodo has maintained a Neutral rating on Affirm Holdings Inc, setting a price target of $62, while the stock trades at $44.78. Affirm's partnership with Walmart accounts for about 5% of its gross merchandise volume, despite Walmart's fintech arm, OnePay, partnering with Klarna for installment loans, introducing competition. Affirm continues to grow, reporting a 46.27% sales increase over the past year, although it remains unprofitable with an EBITDA of -$103.91 million.
Barclays has lowered its price target for General Mills from $68 to $65 while maintaining an Equalweight rating, as the stock trades at $60.94, below analysts' consensus. This adjustment reflects anticipated challenges ahead of the company's Q3 fiscal year 2025 earnings report and recent strategic moves, including acquisitions and divestitures. Analysts from RBC and Citi have also revised their targets, citing concerns over inventory and sales growth, while General Mills continues to innovate with new product launches.
Klarna has partnered with OnePay to offer installment loans for Walmart customers. This collaboration aims to enhance the shopping experience by providing flexible payment options, making it easier for consumers to manage their purchases.
Klarna has teamed up with OnePay to provide installment loans for Walmart purchases in the U.S., replacing Affirm as the retailer's financing partner. This new collaboration enables customers to access flexible payment plans at checkout, both online and in-store, with repayment terms ranging from three to 36 months through the OnePay app.
Walmart's U.S. e-commerce profitability is projected to be achieved as early as the first quarter of fiscal 2025, driven by scale benefits from its first-party and third-party marketplace, advertising, and membership income. Morgan Stanley notes that after over a decade of investments, Walmart is gaining greater control over its profit flow-through, validating its long-term omnichannel strategy and enhancing its competitive stance against digital-first retailers. The report indicates that Walmart's investments in fulfillment infrastructure and digital advertising are beginning to yield sustainable profit contributions.
Walmart's U.S. e-commerce profitability is projected to be achieved as early as the first quarter of fiscal 2025, driven by scale benefits from its first-party and third-party marketplace, advertising, and membership income, according to Morgan Stanley. The firm noted that Walmart's extensive investments in e-commerce and fulfillment are beginning to yield sustainable profits, reinforcing its omnichannel strategy and competitive edge against digital-first retailers. While this potential profitability would have been a significant stock catalyst in the past, it is now largely reflected in Walmart's share prices.
China has summoned Walmart to address concerns over the retailer's decision to cut supplier prices in response to tariffs. This move highlights the ongoing tensions between the Chinese government and foreign companies operating within its borders.
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Walmart partners with Klarna impacting Affirm's market position and forecasts
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ubs maintains neutral rating on affirm stock amid competitive pressures
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ubs maintains neutral rating for affirm with target price of sixty two dollars
15:54 18.03.2025
ubs maintains neutral rating on affirm with price target of sixty two dollars
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15:54 18.03.2025
barclays lowers general mills stock target amid challenging market conditions
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Klarna partners with OnePay to offer Walmart installment loans
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Walmart poised for US e-commerce profitability by first quarter of 2025
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