Shares of fintech companies Affirm and SoFi soared Thursday after both companies reported earnings results that beat on revenue.
Affirm shares jumped 15% on Thursday after the buy now, pay later company reported revenue of $269.4 million in the fiscal first quarter that beat analyst estimates of $248.2 million. Affirm also reported a quarterly loss per share of $1.13.
The company’s stock soared as high as 30% after hours Wednesday after it said it’s expanding its partnership with Amazon. Through the agreement, Affirm will serve as the sole third-party buy now, pay later option for Amazon nationwide, although credit card companies will be able to offer buy now, pay later options in the future.
Meanwhile, SoFi shares jumped more than 14% on Thursday after the digital bank reported better-than-expected quarterly results Wednesday evening. SoFi reported a loss of 5 cents per share in the third quarter, beating analyst estimates of a 14 cent loss per share. Revenue also beat Wall Street estimates of $251.6 million, coming in at $277.2 million.
The company’s diversified business model, which dabbles in lending, investing and a range of financial services that benefit in stay-at-home and opening environments, allowed it to beat on revenue, CEO Anthony Noto told CNBC’s “Squawk Box” on Thursday.
“We are the only one-stop shop for digital financial services so it allows us to meet members when they have a need,” he said.
SoFi also saw its total products more than double year-over-year to 4.3 million, while members increased over the previous quarter.
Analysts at Jefferies maintained a buy rating on SoFi and raised their price target to $26 for the stock as the company upgraded its revenue outlook for the current quarter and its continued growth.
“We will continue to follow the pace of new account growth as well as momentum within the financial svcs segment, and Galileo which we believe is a differentiator for the company as it continues to scale … ,” the Jefferies analysts wrote.
Galileo is financial services and payments platform the company acquired in 2020.
Correction: Updated to reflect the proper spelling of Jefferies.