Are Meme Stocks Back? Jim Cramer Says This Stock Is GameStop 'With Profits'
Portfolio Pulse from Adam Eckert
Jim Cramer highlighted Affirm Holdings Inc (AFRM) on CNBC's 'Squawk On The Street,' noting its 100% rise over the past month and 420% since the year's start, partly due to its expanded payment services at Walmart (WMT). He compared AFRM to GameStop (GME), calling it 'GameStop with profits' and pointing out its high short interest of 25.34%. Despite concerns over loan delinquencies and rising rates, Affirm has few bad loans and may benefit from potential rate cuts. Mizuho raised its price target for AFRM from $30 to $65, which Cramer believes will attract retail traders aiming for a short squeeze.
December 20, 2023 | 8:53 pm
News sentiment analysis
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NEUTRAL IMPACT
GameStop is mentioned as a comparison to Affirm, with Cramer referring to Affirm as 'GameStop with profits.' While not the primary focus, the comparison to a well-known meme stock could influence investor perception of GME.
GameStop's mention as a comparative benchmark to Affirm's performance may not have a direct impact on its stock price, but it keeps GME in the conversation and could affect investor sentiment.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Walmart's partnership with Affirm for expanded payment services is highlighted as a positive development for Affirm, but the impact on Walmart's stock is less direct and likely to be minimal in the short term.
While the partnership with Affirm is positive, Walmart is a much larger company and such a deal is unlikely to have a significant impact on its stock price in the short term.
CONFIDENCE 60
IMPORTANCE 30
RELEVANCE 30
POSITIVE IMPACT
Affirm's stock has seen a significant rise, driven by retail investor interest and an expanded partnership with Walmart. The company's high short interest and few bad loans position it favorably in the current market, with potential rate cuts by the Fed acting as a tailwind.
The stock's recent performance and the positive outlook presented by Jim Cramer, along with the price target increase by Mizuho, suggest a strong bullish sentiment in the short term. However, the stock's volatility and meme stock status could lead to unpredictable swings.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100