Affirm's stock surges due to its growing alliance with Amazon

 Affirm's stock surges due to its growing alliance with Amazon

The e-commerce behemoth said in a statement that Amazon Business will begin rolling out Affirm to qualified sole-proprietor sellers on November 2 and that by Black Friday on November 24, all qualified consumers will be able to use the new payment option at checkout.

On November 2, when e-commerce behemoth Amazon revealed that its business-to-business shop will start providing the buy-now-pay-later loan at checkout, Affirm Holdings's shares surged by about 18%.

The e-commerce behemoth said in a statement that Amazon Business will begin rolling out Affirm to qualified sole-proprietor sellers on November 2 and that by Black Friday on November 24, all qualified consumers will be able to use the new payment option at checkout.

The announcement also said that Affirm is now the first buy-now, pay later lender to be introduced to Amazon Business. Amazon retail customers already have access to its service.

"By selecting Affirm at purchasing on the Amazon Business and entering a few straightforward bits of information, including their register business name and business address, small business owners can expect an instant credit decision," added the statement.

On the announcement, Affirm's shares surged to $20.72, up 17.7%. The stock is expected to have its largest daily percent rise since August, having more than quadrupled in value this year.

Based on LSEG data, the 18 analysts who cover Affirm's stock have a median price objective of $16.50 and a current recommendation of "hold".

Affirm's shares surged 29% in a single session in August when the company revealed better-than-expected quarterly earnings, which were based on an increase in loan transaction volume. On November 8, the business is expected to release its next quarterly financial results.