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  5. AFRM: Seeing that I own lightspeed, is there any reason that I should not consider an investment in AFRM. [Affirm Holdings Inc.]
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Investment Q&A

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Q: Seeing that I own lightspeed, is there any reason that I should not consider an investment in AFRM. If they are basically the same, which would you lean toward and why? Thanks James

Asked by JAMES on January 30, 2023
5i Research Answer:

We would not consider them equivalent. AFRM is a a buy-now-pay-later company, essentially a lender. LSPD is a payments company for merchants. While both are tied to the 'consumer' ultimately their business models are very different. LSPD does not take actual client risk on payment. Both stock have seen a huge January bounce, but we would consider AFRM to be riskier overall, and we would prefer LSPD today. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in AFRM.