KLAR Should I Buy
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Klarna Group PLC is not a strong buy at this moment for a beginner investor with a long-term strategy. Despite some positive growth trends in revenue and analyst optimism about the company's growth potential, the stock faces significant legal risks, weak technical indicators, and concerning financial performance. A hold action is recommended until more clarity emerges around the lawsuits and financial stability.
The stock is currently in a bearish trend with the MACD histogram at -0.46 and negatively expanding, indicating downward momentum. RSI is at 10.34, signaling an oversold condition, but the moving averages (SMA_200 > SMA_20 > SMA_5) confirm a bearish outlook. Key support levels are at $18.46 and $16.973, with resistance at $20.866 and $23.273.
Analysts maintain Buy and Outperform ratings despite lowering price targets, citing strong growth in GMV, revenue, and merchant network expansion.
The stock has a 70% chance to rise by 3.98% in the next week and 5.78% in the next month.
Multiple class action lawsuits related to alleged misstatements in IPO documents, with a lead plaintiff deadline approaching.
Weak financial performance in Q3 2025, with a net income drop of -891.67% YoY and EPS down -933.33% YoY.
Bearish technical indicators and pre-market price action despite oversold conditions.
In Q3 2025, revenue increased by 27.90% YoY to $903M, but net income dropped significantly to -$95M, reflecting a -891.67% YoY decline. EPS also fell to -$0.25, down -933.33% YoY. Gross margin remained flat at 100%.
Analysts have lowered price targets to $39-$46 from previous levels of $43-$58, but most maintain Buy or Outperform ratings. Analysts highlight strong growth in GMV, revenue, and merchant network expansion, but concerns about credit durability and operating losses persist.
