Affirm Holdings shares are trading higher after Scotiabank initiated coverage on the stock with an Outperform rating and announced a $95 price target.

Shares of fintech and financial services companies are trading lower amid elevated bond yields and Fed interest rate expectations, which may dampen enthusiasm for the growth-oriented sector.

Sezzle Marketing ROI Strengthens: Can Efficient Spending Sustain Growth?

Sezzle's Q2 2026 results demonstrate strong marketing ROI with 140,000 net new subscribers added and active subscribers growing 76.4% year-over-year to 854,000, despite marketing expenses rising to $19.4 million. The company maintains a sub-six-month payback period on marketing investments and achieved 51.7% revenue growth to $149.7 million with adjusted net income rising 58.4%. Management plans to reduce core marketing spending in Q3 while relying on payback metrics to guide investment decisions.

Here's How Affirm's AI Upgrade Could Strengthen Credit Underwriting

Affirm Holdings has launched a new transformer-based machine learning model for real-time credit underwriting at U.S. checkouts. The model approved more applications and generated 3.4% more completed purchases in testing by analyzing transaction and repayment patterns. The technology leverages 14 years of proprietary data to broaden customer access while managing credit risk, potentially supporting higher transaction volumes and revenues.

Citizens Reiterates Market Outperform on Affirm Holdings, Maintains $85 Price Target

Citizens analyst David Scharf reiterates Affirm Holdings (NASDAQ:AFRM) with a Market Outperform and maintains $85 price target.