Affirm(AFRM) ZACKS·2025-04-30 18:55Core Insights - Founder-led companies, while representing less than 5% of the S&P 500 index, contribute significantly to the market, accounting for nearly 15% of the total index's market capitalization, particularly in the technology sector [3][4]. Group 1: Founder-led Companies - Founders exhibit a unique passion and risk appetite, often leading to innovative and successful ventures that reflect their core values [2][5]. - Notable founder-led companies include NVIDIA, Amazon, Meta, Tesla, Berkshire Hathaway, and Netflix, which have redefined industries and created trillion-dollar valuations [3]. Group 2: Performance of Founder-led Companies - A Harvard Business Review study indicates that founder-led companies achieved a market-adjusted return of 12% over three years, contrasting with a negative 26% return for companies with professional CEOs [7]. - Current appealing stocks identified include Netflix, Intercontinental Exchange, and Affirm Holdings [7]. Group 3: Netflix - Netflix, co-founded by Reed Hastings, has a market capitalization of 43.5 billion and 95.6 billion and has reported record net revenues and earnings for 19 consecutive years [14]. - The company is well-positioned for growth due to the digitization of the U.S. residential mortgage industry and the integration of Ellie Mae into its operations [16]. Group 5: Affirm - Affirm, with a market capitalization of $16.3 billion, is a key player in the Buy Now Pay Later (BNPL) segment, collaborating with over 337,000 active merchant partners [18]. - The company aims for profitability starting in Q4 of fiscal 2025 and is planning international expansion into Australia and Western Europe [19].