And there are reasons to believe that Affirm has a long runway for growth. For one, Americans are taking on substantial amounts of debt. 

“All major loan categories tracked in the report saw increases as well. Credit card balances topped $1.2 trillion, rising 7.3% from the fourth quarter of last year and logging the smallest yearly increase since 2021,” reported CNN. “Higher levels of household debt are to be expected as they can reflect factors such as population growth, strong economic conditions, holiday-related spending and the rise of e-commerce.”

And second, that means more Americans are turning to buy now, pay later borrowing.

Buy Now, Pay Later Adoption Continues to Accelerate

 U.S. consumers spent roughly $20 billion using BNPL in just the November–December period, nearly 10% higher year over year. 

Zooming out, the long-term opportunity is even more compelling. Global BNPL transaction volume is projected to reach $560 billion to more than $900 billion by 2030, while the U.S. market alone is expected to approach $200 billion by 2026.

And, as noted by MarketWatch, shoppers used BNPL to spend about $20 billion between November 1 and December 31, a 9.8% year-over-year (YoY) increase.

Wall Street is Bullish on BNPL

Wall Street is taking note of those trends. Analysts at Needham upgraded the stock to a buy with a $100 price target. The firm added that, “AFRM has submitted an application to establish Affirm Bank, a proposed Nevada-chartered industrial loan company,” as quoted by CNBC.

In fact, if approved, this would be a game-changer. Owning a banking entity could help lower funding costs, improve margins, reduce reliance on third-party capital markets, and help enhance regulatory flexibility.

JPMorgan Chase & Co. (NYSE: JPM) analysts also upgraded AFRM to market perform, calling it a “long-term secular winner at the expense primarily of the credit card industry.” 

BNPL is a Direct Threat to the Credit Card Industry

BNPL companies like Affirm are a direct threat to the credit card industry. One reason is that BNPL often offers a “free” alternative (no interest for consumers) that draws users away from credit cards, especially for e-commerce. This cuts into fee income for card issuers. 

It’s also important to note that BNPL is becoming very popular among the younger generations. Over half of Gen Z (51%–59%) and Millennials (48%–58%) report using buy now pay later, often making it more common than credit cards for these demographics.

Three, according to a 2025 report from Morgan Stanley, “More than a quarter of U.S. consumers have used ‘Buy Now, Pay Later’ (BNPL), a type of short-term installment loan, to finance purchases. Although BNPL still represents a small share of total U.S. e-commerce sales, it is expanding rapidly: BNPL loans financed 6% of e-commerce in 2024, a jump from 2% in 2020. Additionally, consumers are increasingly using BNPL for everyday items like clothing and groceries, rather than to pay off big-ticket items.”

Investors Can Diversify With an ETF

If you’d prefer to diversify with other BNPL-related stocks, there’s also the iShares FinTech Active ETF (BPAY).  With an expense ratio of 0.55%, the ETF offers exposure to technology disruption around the world and across multiple areas in finance, such as payments, banking, investments, insurance and software. Some of its 37 holdings include PayPal (NASDAQ: PYPL), Charles Schwab (NYSE: SCHW), Capital One Financial (NYSE: COF), Synchrony Financial (NYSE: SYF), Block (NYSE: XYZ) and Global Payments (NYSE: GPN).

As of January 2026, the BPAY ETF trades at $27 a share. The fund is actively managed by BlackRock and has about $9.8 million in total net assets. BPAY seeks to maximize total return by investing at least 80% of its net assets in equity securities of fintech companies that are driving disruption in financial services.

The Trends Line Up in Affirm’s Favor

Rising consumer debt, accelerating BNPL adoption, growing Wall Street support, and a massive long-term market opportunity all suggest that BNPL is not a passing fad—but a structural shift in how consumers pay. 

There are reasons why earnings reports are one of the fundamental drivers of long-term stock value. They reveal a company’s profitability, efficiency, and financial health. That, in turn, directly impacts stock prices through growth, dividends, or buybacks, signaling future potential and overall market trends.

It’s also critical to focus on forward guidance, especially for technology stocks. In a sector where valuations often reflect future growth more than current profits, management commentary can matter as much, if not more, than the headline numbers.

That dynamic will be on full display later this week, with Intel’s earnings report acting as a potential catalyst for the broader tech sector. Expected after the bell on Thursday, Intel is expected to post adjusted EPS of eight cents a share on revenue of $13.42 billion for the fourth quarter of 2025. Granted, that would be down from earnings of 13 cents a share on revenue of $14.26 billion for the year-earlier period. 

At first glance, those year-over-year declines may not appear inspiring. However, analysts are bullish. 

“We expect Intel to report better results and slightly higher guidance, supported by strong server CPU demand as customers upgrade to Granite Rapids, and visibility that server CPU supply is nearly sold out through 2026,” wrote KeyBanc analysts, as quoted by Barron’s.

If Intel delivers even modestly better guidance, or signals accelerating momentum in data center and AI-related workloads, it could go a long way toward restoring confidence in the legacy chipmaker. Given Intel’s size and influence, a positive surprise could ripple across the semiconductor space and help lift tech stocks more broadly.

Block Faces a Confidence Test

Investors will also be watching Block Inc. (NYSE: XYZ), which is scheduled to report fourth-quarter earnings on February 19.

The fintech company, which builds integrated ecosystems across commerce, financial products, and services, is expected to post earnings of $0.26 per share—consistent with the prior year’s results. Revenue is projected to range between $6.23 billion and $6.48 billion.

In the third quarter, Block reported EPS of $0.54, which fell short of expectations by $0.14. Revenue totaled $6.11 billion, representing 2.2% year-over-year growth but missing consensus estimates by approximately $200 million. 

Despite the miss, management raised its full-year 2025 outlook, underscoring confidence in the company’s longer-term growth trajectory. Block now expects full-year gross profit of $10.243 billion, implying 15% year-over-year growth, and adjusted operating income of $2.056 billion, representing a 28% increase from the prior year.

Management highlighted continued momentum across its core platforms. Square GPV growth accelerated to 12%, driven by product innovation and expanded distribution, enabling the company to gain profitable market share.

Cash App’s gross profit growth accelerated to 24%, while monthly active users reached 58 million in September. In addition, Proto generated its first revenue, marking an early but important step toward what management believes could become Block’s next major ecosystem.

Roblox Delivers Growth, Not Profits

Roblox Corp. (NYSE: RBLX) is another name investors are keeping an eye on, particularly after a surprisingly strong third quarter.

Last quarter, Roblox surprised to the upside. Third-quarter sales and earnings results both topped expectations, with revenue growing 48% year over year to $1.36 billion.

Unfortunately, even with those numbers, the company still wasn’t profitable. In fact, it had a loss of 37 cents per share, which was 14 cents better than expected, but it was still a loss, with no clear path to profitability.

Looking ahead to the fourth quarter, Roblox expects revenue of $1.35 billion to $1.4 billion, representing growth of 37% to 42%. The company also anticipates a net loss of between $345 million and $375 million for the quarter.

For the full year, 2025 bookings are expected to range from $6.566 billion to $6.616 billion, indicating growth of between 50% and 51%. Roblox also projected a consolidated net loss ranging from $1.099 billion to $1.129 billion for the year.

Conclusion

In short, each of these companies faces its own challenges. Intel is working to regain relevance and momentum, Block is balancing ecosystem growth with execution risk, and Roblox continues to prioritize expansion over profitability. Still, improving guidance, strong demand trends, and long-term growth narratives suggest that positive surprises—particularly from Intel—could be enough to ignite a meaningful tech rally in the near term.

When a company buys back its own stock, the total number of outstanding shares decreases. The principles of supply and demand dictate that stock buybacks will increase the value of a stock. Fewer shares available to buy increases the value of the outstanding shares.

However, stock buybacks are also a way for companies to reinvest in future growth. That certainly seems like the case for these three companies that recently announced significant share buyback programs.

Lyft: Should You Ride With This Ride-Sharing Stock?

Lyft Inc. (NASDAQ: LYFT) increased its stock buyback program to $750 million in May 2025. “The company, which is expanding beyond major U.S. cities into smaller markets, said it intends to use $500 million of the authorization within the next 12 months,” added Reuters.

At the time of the announcement, management said it intended to buy back about $200 million in the next three months.

Even better, “Q1 marked Lyft’s 16th consecutive quarter of double-digit year-on-year gross bookings growth,” said CEO David Risher, adding that in the last week of March, rides reached the highest weekly levels in the company’s history, making 2025 the strongest start in Lyft’s history, according to Seeking Alpha.

Plus, free cash flow more than doubled from last year to $280.7 million in the first quarter and reached nearly $1 billion for the trailing 12 months. This is an important consideration because it means the stock buybacks are coming from a position of strength.

General Motors: Doubling Down on Future Growth

General Motors (NYSE: GM) just raised its quarterly dividend by 25% to 15 cents a share, and initiated a new $6 billion share buyback program. The company bought back $1.5 billion of stock in the third quarter.

Since 2023, the company has announced $16 billion in stock buyback programs, which resulted in buying back more than a billion outstanding shares.

“We feel confident in our business plan, our balance sheet remains strong, and we will be agile if we need to respond to changes in public policy,” CFO Paul Jacobson said, as quoted by CNBC. “The repurchase authorization our board approved continues a commitment to our capital allocation policy.”

Despite concerns over soft demand for both electric vehicles and internal combustion engine (ICE) vehicles, GM stock is up approximately 33% in 2025. As of this writing, the stock is trading slightly above its consensus price target of $70. However, analysts have been increasing their price targets. And at 6x forward earnings, the stock has an attractive valuation.

Block is a Turnaround in the Making

Block (NYSE: XYZ) is a financial technology (fintech) company that is in the process of diversifying away from its legacy point-of-sale (POS) business and launching more services tied to its Cash App, as well as offering artificial intelligence tools to sellers.

Block just authorized a $5 billion stock buyback. It also forecasted adjusted EPS of $5.50 by 2028, which is ahead of estimates of $4.76 a share. For 2026, the payments company anticipates adjusted earnings per share will be $3.20, four cents above Wall Street targets.

Management delivered “an articulation of the [near-term/long-term] vision paired with enough operational detail to credibly support the turnaround and growth narrative through 2028, culminating in a ‘mic drop’ moment for Amrita Ahuja (“CFO”) as she delivered a very clear and impressive financial presentation,” Evercore ISI analysts said, as quoted by Seeking Alpha.

The Bottom Line on Stock Buybacks

Critics of stock buybacks will say that they can be a way for a company to disguise its lack of growth. That means they’re giving shareholders growth via buybacks because they have reached a mature phase of their business cycle.

However, as you can see with these three companies, when stock buybacks are combined with the potential for future growth, they can provide traders and investors with asymmetric opportunities.

The long-awaited initial public offering (IPO) of Klarna Group (NYSE: KLAR), one of Europe’s leading buy-now-pay-later (BNPL) firms, has reenergized the fintech sector. Klarna priced its IPO at $40 per share, which was higher than its initial target, and opened trading on September 10 at a 30% premium of $52. This klarna ipo is set to reshape the market dynamics.

As we approach the one-month anniversary of Klarna’s IPO, the stock has given back that premium, but still trades around $42. That’s an impressive feat and could indicate that there is strong demand for fintech stocks after a multi-year correction attributed to higher interest rates and tighter credit conditions that pressured earnings.

Investors are closely watching the klarna ipo as it could signal a new era for fintech investments.

If that’s the case, there is a trio of names that are peers of Klarna but are already profitable, have diversified offerings, and are positioned to capture growth from digital commerce and embedded finance trends. 

Reclaiming Its Role as the Fintech Standard-Bearer

Perhaps illustrating the renewed interest in fintech stocks, PayPal Holdings Inc. (NASDAQ: PYPL) stock is up approximately 5% in the last 30 days. But despite this move, the stock is still down about 15% in 2025. If the stock made that 15% gain it would still be slightly below its consensus price target of $84.50, which is an 18% gain from its current level. 

After several years of sluggish growth and margin pressure, the company’s turnaround strategy under CEO Alex Chriss is beginning to show results. PayPal is focusing on operational efficiency, product innovation, and shareholder returns, including a new $5 billion buyback authorization.

The company’s Venmo platform continues to expand its utility, and PayPal’s branded checkout remains one of the most trusted payment methods for online merchants. With new initiatives in AI-driven fraud detection and digital wallet personalization, PayPal is positioning itself for long-term competitiveness. The stock trades at a significant discount to its historical valuation, with a forward P/E ratio around 14, which is in line with the company’s projected earnings growth of approximately 12%. 

Building the Next Generation of Digital Finance

Block Inc. (NYSE: XYZ) stock is also up about 5% in the last week. The company, which was formerly known as Square, blurs the lines between commerce, banking, and cryptocurrency. The company operates as two business units: Seller for merchants and Cash App for consumers. 

Block’s basic premise is that it services smaller merchants that need e-commerce solutions that larger players may ignore. It also serves consumers with minimal banking needs. It’s also focusing more on Bitcoin-related projects, which its target audience may lean into. But it could turn off larger investors. The company’s long-term growth requires that it grow its user base. More revenue will help the company expand its margins. 

To that end, Block believes it has a significant unmet total addressable market (TAM). Lower interest rates could help that. Analysts seem to agree with several higher price targets coming in before the company reports earnings in November. 

Riding the BNPL Wave Back Into Favor

Affirm Holdings Inc. (NASDAQ: AFRM) is the closest stock in this group, which you can say is a comparison to Klarna. However, the halo effect hasn’t emerged yet.  AFRM stock is down 13% in the last 30 days, and it hasn’t enjoyed the bounce in the space. 

With the stock up 24% in 2025, even after the pullback, this could just be a case of profit-taking. The stock has a lofty valuation at over 700x earnings. However, after the pullback, the stock is now about 8% below its consensus price target, and analysts are aggressively raising their price targets on the stock. 

Affirm has built strong relationships with merchants such as Amazon, Shopify, and Walmart, giving it a sizable share of online installment payments. After struggling with rising credit losses in 2022–2023, Affirm has improved its risk management and expanded its recurring revenue through partnerships and its virtual card offerings.