Jim Cramer told his Mad Money viewers Thursday night that there are some long-term themes you can stick to to make money. Some of those themes include cybersecurity, self-care products, the digitization of everything and financial empowerment.
Case in point: Affirm Holdings (AFRM) , the "buy now, pay later" service. They announced a new partnership with Amazon (AMZN) . In his first "Executive Decision" of Thursday evening Cramer spoke with Max Levchin, founder, chairman and CEO of Affirm to learn more.
Levchin explained that merchants choose Affirm because it offers a full suite of services that give them the safety and control of installment payments while giving customers the most flexibility possible in how they want to pay. The company has successfully used technology to solve a puzzle that many others have failed to solve.
When asked why consumers flock to Affirm, Levchin said that younger people need to buy things and they've learned the hard way that credit cards are working against them. Affirm is fast, flexible and totally transparent, and because it uses technology, it doesn't offer payment terms that consumers can't afford to repay.
Let's check the charts of AFRM. We looked at AFRM on August 17 and wrote that "In July the charts looked weak and the risk appeared to be to the downside. One month later and the charts are more positive with AFRM making a higher low. Aggressive traders could probe the long side of AFRM on strength above $70 risking to $58. The $104 area is our first price target."
In this updated daily bar chart of AFRM, below, gapped up on heavy trading volume. Suddenly a six-month base pattern was visible. The upside gap has only been partially "filled" telling us that traders are anxious buyers of AFRM and are not waiting for a pullback to the top end of the base pattern around $72 or so. Prices are trading above the rising 20-day and 50-day moving averages (shorter averages because of the lack of trading history).
The On-Balance-Volume (OBV) line has been rising since May and tells us that buyers of AFRM have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of AFRM, below, we can see a bullish "rising window" which is what Japanese technical analysts call a gap to the upside. The "window" will tend to act as support until there is a close below it. Dips into the window will most likely be bought. The weekly OBV line is clearly bullish.
In this daily Point and Figure chart of AFRM, below, the price gap disappears because of this chart technique. A potential downside price target of $74 is indicated.
In this weekly close only Point and Figure chart of AFRM, below, we can see a potential price target in the $165 area.
Bottom line strategy: Continue to hold longs recommended in our last review. Raise stops to $69 and raise your target to the $165 area from $104. Aggressive traders could add to longs on available weakness.