Shares of Affirm ( (AFRM) - Get Affirm Holdings, Inc. Class A Report), a fintech company that lets users split purchases into several payments, jumped in after-hours trading after the company announced its plans to expand a partnership with Amazon ( (AMZN) - Get Amazon.com, Inc. Report).
At bell on Wednesday, shares of the San Francisco-based Affirm were down 15.37% to $133.53.
But things rapidly turned around when late on Wednesday the company reported above-estimate quarterly earnings and announced its expanded partnership with Amazon.
As first reported by Reuters, any Amazon purchase above $50 will now be eligible to be split into monthly payments through Affirm.
The company will be the sole "buy now, pay later" option offered through the next two holiday periods in the U.S. and Amazon will also integrate Affirm into its digital wallet.
Along with news of the partnership, Affirm also revealed that it expects revenue of between $320 million to $330 million in revenue in the current quarter while analysts only predicted between $248 and $296 million.
EPS will come in at $1.13 adjusted per share while gross merchandise value in the quarter will come in at $2.7 billion. Active consumers more than doubled to 8.7 million while merchant rose to 102,000 from $6,500 a year ago.
Once the news was announced, (AFRM) - Get Affirm Holdings, Inc. Class A Report shares gained $36.50, or 27%, to $170.03 in after-hours trading — a gain rivaled only by the 47% seen when the initial Amazon partnership was first announced in August.