To The Moon

Economic Preview: Key Data Releases for January 2026 (week of 02Feb2026)

Consumer Price Index (CPI) Update

The Consumer Price Index (CPI) data is scheduled for release in the coming week. Previously, the year-on-year CPI was reported at 2.7%. This data is significant as it provides insight into the current inflation rate, a critical economic indicator. Market volatility is expected around the release, given CPI’s role in reflecting inflation trends. Controlling inflation remains a central focus for the Federal Government, which has set a target rate of 2%.

Existing Home Sales for January

Another important economic indicator to be released is the existing home sales data for January. The previous report showed a figure of 4.35 million. The upcoming data will offer valuable insight into the state of the American real estate market.

Earnings Calendar (02Feb2026)

Earnings Reports to Watch

Several major companies are set to release their earnings, which will be closely watched by investors and analysts for insights into various sectors of the economy. The companies scheduled to report include:

• Palantir

• Tyson

• Disney

• PayPal

• AMD

• Alphabet

• Amazon

• Shell

• Affirm

These earnings releases will provide valuable information on company performance and could have a significant impact on their respective industries and the broader market.

Let us look at Affirm (AFRM), a leading “Buy Now, Pay Later (BNPL)” player.

Affirm is recognised as one of the prominent players in the Buy Now Pay Later (BNPL) sector, ranking alongside the market leader, Klarna. The company’s innovative payment solutions have contributed to its significant standing within the industry.

Stock Performance and Analyst Sentiment

Recently, Affirm’s stock price has fallen 1.26% over the past year. Technical analysis currently recommends a “strong sell” rating. In contrast, analyst sentiment suggests a “buy” rating, with a target price set at $92. This implies a potential upside of 52.57% from the current price of $60.30 (based on the last closing).

Revenue Growth

Affirm Holdings, Inc. demonstrated significant revenue growth from 2019 to 2025. The company’s revenue increased from $0.26 billion in 2019 to $3.2 billion in 2025, reflecting the expanding market presence and increased adoption of its payment solutions.

Gross Profit and Operating Results

Gross profit showed a substantial rise, moving from $156 million in 2019 to $2.17 billion in 2025. In 2019, Affirm reported a loss of $102 million. However, by 2025, the company achieved a profit of $338 million, marking its first operating profit in seven years. This turnaround in profitability is a positive indicator for the company’s future financial health.

Earnings Per Share (EPS)

Earnings per share (EPS) began at -$0.65 in 2019. The company reached a positive EPS of $0.15 in 2025. Notably, the most challenging year during this period was 2023, when EPS hit a low of -$3.34.

Return Metrics

Affirm’s return on assets, return on equity, and return on invested capital were negative throughout the initial years of the period analysed. These metrics only turned positive in 2025, demonstrating improvement in the company’s overall financial performance.

Valuation

Affirm Holdings, Inc. currently has a price-earnings ratio of 85.4, which suggests that the stock may be overvalued at this time.

The BNPL is expected to grow to a $1 trillion market by 2031.

The expected earnings are $0.267 and $1.06B for the EPS and revenue, respectively.

With the business turning profitable, can this be considered for our portfolio?

However, we are concerned with the increasing number of customers using BNPL for daily essentials. About 25% of the BNPL users are using loans to buy groceries, up from 14% a year ago. This does not seem to be sustainable.

Given the above, the growing market may signal underlying weakness - costs of living in the broader market. BNPL businesses make money when customers can pay back. For this, I prefer to monitor the performance of this business.

@TigerStars

$Affirm Holdings, Inc.(AFRM)$

$Alphabet(GOOG)$

$Vanguard S&P 500 ETF(VOO)$