SoFi Technologies fell 6.69% to $14.22 on Oct. 14, 2026, hitting a 52-week low amid hotter-than-expected inflation data and sector-wide pressure on lenders. The fintech stock has declined nearly 50% from last year's high. Other fintech stocks also suffered, with Robinhood Markets down 8.54% and Affirm down 9.47%. While SoFi's membership and revenue are expanding, concerns persist about lending profitability in a high-rate environment. Analyst sentiment remains mixed, though the company's stablecoin expansion could offer future growth potential.

The article highlights two computer and technology stocks with positive Earnings Surprise Predictions (ESP): ON Semiconductor Corp. (ON) with a +5.20% ESP and Affirm Holdings (AFRM) with a +11.03% ESP. Both stocks have Zacks Rank #3 (Hold) ratings and are expected to beat their upcoming quarterly earnings estimates, with ON reporting on November 2, 2026, and AFRM on November 5, 2026.

Affirm Holdings (AFRM) has demonstrated a strong earnings-beat streak, surpassing estimates by an average of 688.24% over the last two quarters. With a positive Earnings ESP of +11.03% and a Zacks Rank #3 (Hold), the company is positioned to potentially beat consensus estimates again in its November 5, 2026 earnings report. Stocks with this combination of positive ESP and solid Zacks Rank historically beat estimates nearly 70% of the time.

The article explains how to use the Zacks Earnings ESP (Expected Surprise Prediction) filter to identify stocks likely to beat earnings expectations. The ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, and when combined with a Zacks Rank #3 or stronger, stocks posted positive surprises 70% of the time with average annual returns of 28%. Two example stocks highlighted are Affirm Holdings with an +11.03% ESP and Cadence Design Systems with a +0.56% ESP.

Affirm Holdings (AFRM) has been trending on Zacks.com. The stock returned -2.2% over the past month, underperforming the S&P 500's +0.6% gain. While the company showed strong recent earnings with a 1300% EPS surprise and 33% revenue growth, its consensus earnings estimate for the current fiscal year declined 66.2% year-over-year. AFRM received a Zacks Rank #3 (Hold) rating and is trading at a premium valuation (Grade D) relative to peers, suggesting it may perform in line with the broader market in the near term.

Affirm Holdings closed at $70.44, up 1.75%, outperforming the S&P 500's 0.2% gain. The company is expected to report EPS of $0.34 (up 47.83% YoY) and revenue of $1.21 billion (up 29.95% YoY). However, full-year earnings are projected to decline 66.18% to $1.87 per share. AFRM trades at a Forward P/E of 36.95, significantly above its industry average of 19.07, and holds a Zacks Rank of #3 (Hold).

Affirm Holdings' direct-to-consumer business is accelerating with Affirm Card GMV more than doubling to $2.84 billion and active Card consumers rising 125% to 5.2 million. Card transactions now represent 15% of total transactions, up from 10% year-over-year, indicating deeper platform engagement. With only 19% card penetration among active consumers, Affirm has significant room for expansion through improved in-store experiences and card-specific features.

Affirm Holdings has partnered with Crate & Barrel Holdings to offer installment financing across Crate & Barrel, Crate & Barrel Kids, and CB2 brands in the US and Canada. The partnership spans over 100 stores and websites, potentially increasing Affirm's GMV and revenues through higher-value furniture purchases. However, the near-term financial impact remains unclear due to undisclosed transaction volumes.

Sezzle Inc. is leveraging its On-Demand buy now pay later product to compete for enterprise merchants with competitive pricing while building a pathway to subscription conversions. The company reported strong Q2 metrics including 32.4% transaction growth, 97.2% repeat usage, and 982,000 monthly On-Demand & Subscribers. Recent merchant additions include Poshmark, Gymshark, and Debenhams, though long enterprise sales cycles may limit growth pace.

SoFi obtained a federal bank charter in January 2022, allowing it to take deposits and fund loans internally, which has driven significant growth in deposits ($1.2B to $45.5B) and membership (3.9M to 15.8M members). Upstart received conditional approval for a bank charter in July 2026 with final approval expected in early 2027, while Affirm applied for an industrial loan bank charter in January 2026 but has not yet received approval. Bank charters are transformative for fintechs as they eliminate third-party funding fees and allow them to offer more competitive rates.

Sezzle's Q2 2026 results demonstrate strong marketing ROI with 140,000 net new subscribers added and active subscribers growing 76.4% year-over-year to 854,000, despite marketing expenses rising to $19.4 million. The company maintains a sub-six-month payback period on marketing investments and achieved 51.7% revenue growth to $149.7 million with adjusted net income rising 58.4%. Management plans to reduce core marketing spending in Q3 while relying on payback metrics to guide investment decisions.

Affirm Holdings has launched a new transformer-based machine learning model for real-time credit underwriting at U.S. checkouts. The model approved more applications and generated 3.4% more completed purchases in testing by analyzing transaction and repayment patterns. The technology leverages 14 years of proprietary data to broaden customer access while managing credit risk, potentially supporting higher transaction volumes and revenues.