How will the earnings beat and revenue surprise affect AFRM's valuation multiples and analyst price targets?

Affirm’s Q2 earnings blew past consensus – EPS of $0.20 versus the roughly $0.11 Wall Street was expecting – and revenue came in ahead of estimates, delivering a double‑digit surprise on both the top‑ and bottom‑line. The surprise immediately lifts the forward‑P/E and EV/EBITDA multiples that analysts use to value the stock. Prior to the report the consensus forward‑P/E hovered around 45×, but with the new EPS guidance now implying a roughly 20% earnings upgrade, the implied forward‑P/E contracts to the low‑40s. The EV/EBITDA multiple similarly narrows, moving from the high‑30s to the mid‑30s as the market re‑prices the higher cash‑flow outlook. In practice, the higher multiples are justified by the stronger growth narrative and the company’s expanding merchant base, so analysts are moving price targets up by an average of 12‑15% – from a median of $30‑$32 to roughly $34‑$36 per share.

From a technical standpoint, the earnings lift sent the stock 15% higher, breaking above the 50‑day EMA and testing the prior resistance zone around $35. A bullish volume surge and a clean retest of the breakout level suggest the rally could hold, at least through the next earnings guidance release. Traders looking to capture upside should consider buying on any pull‑back toward the $30‑$31 support band, with a stop just below $28 to guard against a potential short‑term correction. Conversely, if the stock stalls near $35 and fails to break the $38‑$40 ceiling, profit‑taking could pressure it back toward the 20‑day EMA, offering a short‑term selling opportunity. Overall, the earnings beat justifies a modest re‑rating of valuation multiples and an upward revision of analyst targets, but positions should be managed with tight risk controls given the stock’s volatility and the need for sustained growth momentum.