Affirm Holdings (NASDAQ:AFRM) just dropped a major play to reshape its financial game. The buy-now-pay-later giant is offering $750 million in convertible senior notes due 2029, while simultaneously planning to repurchase up to $300 million worth of its Class A common stock. It's a two-birds-one-stone approach: extend debt maturity while signaling confidence in the stock. That said, new debt means investors need to watch for a potential dilution hit if the notes convert to shares.

• Warning! GuruFocus has detected 8 Warning Signs with AFRM.

The market reaction? A bit of a wobble. Affirm's stock slipped 6.5% to $68.16 on the news, even though it's already up 48% this year. Deutsche Bank analysts aren't sweating it. They bumped their price target to $75, citing strong consumer spending trends and a macro environment that still favors Affirm's growth. Adding more fuel to the fire, the company locked in a $4 billion partnership with Sixth Street, giving it extra cash muscle to fund loan growth over the next three years.

Here's the bottom line: Affirm's leadership is doubling down on long-term bets, using this financial maneuver to shore up liquidity, cut short-term debt stress, and boost shareholder value. Investors might feel the short-term pinch, but between the share buyback and flexible note terms, there's a clear path to upside. If management nails the execution, this move could pay off big as Affirm looks to solidify its position in the fast-evolving fintech space.