Affirm soars as BNPL lender aims to turn profit ahead of Street targets


Shopping trolley is seen in front of Affirm logo in this illustration, July 24, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) - Affirm shares rose 33% on Thursday after the buy-now-pay-later lender trounced estimates for quarterly results and said it expects to be profitable by the fourth quarter of next fiscal year, sooner than Wall Street had forecast.

Cash burn has been one of the biggest drags on the valuation of financial technology companies, especially for those operating in the payments sector, which also remains vulnerable to fluctuations in consumer health and interest rates.

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