Target (TGT) is teaming up with Affirm (AFRM) and Sezzle for the holiday season, becoming the latest retailer to jump on the buy-now-pay-later trend popular with younger shoppers. Affirm stock climbed Wednesday.
Target told USA Today on Wednesday that customers can use the installment payment plan providers to take advantage of holiday deals and specials.
“Through our partnerships with Sezzle and Affirm, we’re offering guests additional flexible payment options that meet even more of their needs no matter how they choose to shop,” said Gemma Kubat, Target’s president of financial and retail services.
Like layaway programs popular in Christmases past, buy now, pay later providers allow customers to spread out interest-free payments, allowing them to avoid putting larger purchases on credit cards with high interest rates. The service is especially popular with Gen Z and Millennial shoppers that don’t have credit cards.
Affirm already works with Walmart (WMT) and recently reached a deal with Amazon (AMZN). Square (SQ) announced it was buying Afterpay for $29 billion in early August.
Affirm Stock Offers Buying Opportunities
Shares jumped 8.6% to 121 on the stock market today. Affirm stock is bouncing off its 21-day line, a bullish action that would signal an aggressive buy in a better market. But the market is currently in correction. Affirm stock was added to SwingTrader on Wednesday.
AFRM stock is forming a very deep cup-with-handle base going back to early February, after an initial IPO base breakout fizzled. Investors could see a buy point at 133.27. The stock has formed multiple handles in the last few months.
Affirm stock jumped 15% on Aug. 2, in reaction to the Square-Afterpay deal. It skyrocketed 47% on Aug. 30 following the Amazon partnership, then gapped up 34% on Sept. 10 following quarterly results.
Target stock fell 0.5% to 226.50. The stock has been pulling back to its 200-day line in recent weeks after a strong run.
Amazon stock and WMT stock edged higher. Square stock rose modestly. All three are below their 200-day moving averages.
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