William Blair recommends that investors use the weakness this morning in Affrim (AFRM) to accumulate shares following news that soon-to-be-public Klarna (KLAR) is the new exclusive provider of buy-now-pay-later services for Walmart (WMT). While the firm cannot explicitly size the current Walmart relationship, it notes that no Affirm customer is 10% of revenue and it believes that Walmart’s GMV and revenue contribution is smaller for Affirm than that of other major retail partners, so it sees limited risk to its revenue estimates and even less EBIT exposure, says the analyst, who keeps an Outperform rating on Affirm shares.
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