Affirm Holdings, Inc. (AFRM) stock is soaring 5.19% in pre-market trading on Monday, as investors react to a bullish analyst report highlighting the company's strong growth potential in the Internet Software industry.

The surge comes after Affirm was named one of the top five Internet Software stocks to buy for solid short-term returns. Analysts praised Affirm's robust revenue growth, driven by diverse income streams including merchant network fees, interest from loans, and virtual card revenues. The company's fiscal 2025 revenue expectations of $3.13-$3.19 billion and key partnerships with major players like Apple Pay and Hotels.com have further bolstered investor confidence.

Affirm's financial outlook appears particularly strong, with expected revenue growth of 36.9% and earnings growth of 96.4% for the current fiscal year ending June 2025. The average short-term price target from brokerage firms suggests a potential upside of 76.4% from the last closing price, with some analysts projecting gains of up to 112.4%. This positive sentiment, coupled with Affirm's expansion into new markets such as the United Kingdom, has likely contributed to today's pre-market rally.