Fun Fact of The Day 🌞
Snapchat CEO has turned down offers of $3B from Facebook and $4B from Google
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What to expect in today's market 🕒
Zoom Video Communications Earnings (ZM)
Catalent Inc. Earnings (CTLT)
Nordson Corporation Earnings (NDSN)
Cloudera Inc. Earnings (CLDR)
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🤝 Affirm: From Amazon With Love?
Buy Now, Pay Later (BNPL) service provider Affirm (AFRM) has signed an agreement with Amazon to have its flexible payment service available on Amazon's platform. Given that Affirm’s largest merchant thus far is the beleaguered Peloton (PTON), this is a much-needed win for Affirm.
Survive Now Thrive Later
Affirm desperately needed some good news to put the wind back in its sails. While it’s not clear how many concessions it has given to winning Amazon over, the fact remains that Amazon is now added to Affirm’s list of marquee relationships which includes Walmart and Peloton.
Thus far, Amazon has never had a BNPL option on its platform. Over the next few months, this feature will be rolled out to the broader customer base and piloted first to ensure any kinks will be ironed out upfront.
Once fully set up, any Amazon purchases over $50 can be broken down into simple monthly instalments. There are no late fees, hidden fees, and Affirm has maintained the customers will never pay more than what they’ve agreed to at the time of checkout.
Affirm hopes to become a credible alternative to credit cards for Amazon's customers at the point of sale. While some of the Amazon customer loans will bear interest, some will come with an Annual Percentage Rate of 0%.
BNPL is fast becoming a pretty crowded space. Square had recently announced it’s acquiring Afterpay for $29B. PayPal and MasterCard are offering similar products. Even Apple is expected to announce a BNPL feature in partnership with Goldman Sachs.
For Amazon, BNPL may be just a small feature to make its customers' purchase process more convenient. For Affirm, on the other hand, it’s an important win. How important? Well, the ink may not even have dried on the agreement, but even a mere announcement that Affirm will be Amazon’s BNPL partner a few months down the lane was enough to breathe new life into the stock price.
Market Reaction
AFRM ended at $67.90, down 2.97%. Shares rose 35.6% in after-hours trading.
Newsworthy 📰
Woes:
US regulators probe Peloton over treadmill injuries (PTON -8.55%)
Debut:
Amazon-backed Rivian files for IPO gears up for blockbuster year-end flotation (AMZN +1.01%)
Failure:
Astra cuts short rocket launch, with next attempt expected in the coming days (ASTR -9.00%)
What Next?
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Disclaimer: The email content is prepared and provided by Winvesta India Technologies Ltd. for informational and educational purposes only and is not meant to represent trade or investment recommendations. Remember capital is at risk. Terms & Conditions apply.