Affirm Holdings, Inc. (AFRM) saw its stock soar 5.19% in pre-market trading on Monday, as investors reacted positively to analysts' projections of strong growth potential for the company in 2025. The surge comes amid a broader optimism for the Internet Software and Services sector, which is expected to outperform the market in the coming months.

Affirm Holdings, a leading player in the buy-now-pay-later space, has been highlighted as one of the top five internet software stocks with strong potential for 2025. Analysts are particularly bullish on AFRM's diverse income streams, including merchant network fees, interest from loans, and virtual card revenues. The company's fiscal 2025 revenue is projected to be in the range of $3.13-$3.19 billion, signaling robust growth prospects.

Key factors driving investor confidence include Affirm's expanding partnerships, such as those with Apple Pay and Hotels.com, as well as its recent expansion into the United Kingdom through a collaboration with Alternative Airlines. The company's focus on tapping into industries like travel, hospitality, and technology is seen as a strategic move to fuel further growth. Additionally, Affirm's strong revenue and earnings growth rates, projected at 36.9% and 96.4% respectively for the current year ending June 2025, have contributed to the positive sentiment. With brokerage firms setting an average short-term price target representing a 76.4% increase from the previous closing price, AFRM stock appears poised for significant upside potential in the near term.