Shares of
Affirm Holdings
and
Shopify
were charging higher on Cyber Monday.
Stock in Affirm (ticker: AFRM), a “buy now, pay later” provider jumped 9.5%, while the e-commerce platform Shopify (SHOP) climbed 5.1% in Monday trading, putting each on pace for new 52-week closing highs, according to Dow Jones Market Data. This year, the stocks have soared around 200% and 113%, respectively.
Two factors appear to be behind the latest moves. First, spending on Cyber Monday is expected to be huge.
Adobe
Analytics has forecast that shoppers will spend between $12 billion and $12.4 billion, which it said would be “the biggest online shopping day of all time,” and follows strong numbers from Black Friday.
Shopify said on Saturday that Black Friday sales were up 22% from the same day last year.
“Buy now, pay later,” is the other part of the picture. Usage of that payment method on Cyber Monday is expected to rise 19% from last year to $782 million in online spending, according to Adobe. That would continue a strong run from Nov. 1 through Sunday, with BNPL spending up 14% from a year earlier to $7.3 billion.
Both the strong overall spending and the growth in usage of BNPL are good news for companies like Affirm.
The upshot is that with another day of deals now in full swing, both stocks are worth watching.
Write to Emily Dattilo at [email protected]
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