Klarna Group Shares Plunge 26.91% After Q4 Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy KLAR?
Source: Fool
- Earnings Miss: Klarna Group's Q4 results fell short of expectations, leading to a 26.91% drop in stock price to $13.84, reflecting challenges with higher credit provisions and slower near-term growth.
- Surge in Trading Volume: The trading volume reached 44.6 million shares, approximately 1,159% above the three-month average, indicating heightened market attention and volatility regarding Klarna's future performance.
- Increased Credit Loss Provisions: Klarna's provision for credit losses surged 59% year-over-year, exacerbating investor concerns and putting greater pressure on the company's future profitability, which affects market confidence in its long-term growth.
- Significant User Growth: Despite challenges, Klarna's banking operations doubled its active consumer count to 15.8 million after launching debit cards and bank accounts in the U.S., showcasing its market potential, though investment risks remain high.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy KLAR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on KLAR
Wall Street analysts forecast KLAR stock price to rise
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 18.950
Low
36.00
Averages
44.36
High
55.00
Current: 18.950
Low
36.00
Averages
44.36
High
55.00
About KLAR
Klarna Group Plc is a United Kingdom-based technology company focused on developing commerce networks. The Company is an artificial intelligence (AI)-powered global payments network and shopping assistant. It provides consumers and merchants with a range of solutions, including payment, advertising and digital retail banking, through several channels. Its online payments solution is designed to bridge uncertainty in the transactions between consumers and merchants by providing short-term credit to consumers interest-free. Its range of payment options allows consumers to purchase what they choose, both online and offline. Its payment solutions include Pay in Full, Pay Later and Fair Financing. Its Pay in Full instantly settles purchases at the time of the transaction. Its Pay Later enables consumers to purchase goods or services at the time of the transaction and pay the full amount at a later date. Its Fair Financing allows consumers to pay for their purchase over a longer duration.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
KLARNA STOCK PLUMMETS 23% FOLLOWING Q4 REPORT
- Company Performance: KARNASHARE reported a 23% decline in its stock price following the release of its Q4 results.
- Market Reaction: The significant drop in stock value indicates investor concerns regarding the company's financial performance and future outlook.
- Financial Results: Details of the Q4 results that led to the stock decline have not been specified, but they likely included disappointing earnings or revenue figures.
- Investor Sentiment: The reaction from the market suggests a lack of confidence in KARNASHARE's ability to recover or improve in the near term.
See More
Klarna Achieves Over $1 Billion in Quarterly Revenue for the First Time, Yet Stock Prices Continue to Decline.
- Klarna's Revenue Milestone: Klarna reported its first billion-dollar revenue quarter, marking a significant achievement for the Swedish buy now, pay later provider.
- Investor Reaction: Despite the milestone, the stock market response suggests that investors were not particularly impressed with the results.
See More
Klarna to Announce Q4 Earnings on February 19
- Earnings Announcement Schedule: Klarna is set to release its Q4 2023 earnings report on February 19 before the market opens, with consensus estimates predicting an EPS of -$0.02 and revenue of $1.07 billion, providing investors with crucial insights into the company's financial health.
- Market Expectation Analysis: Analysts maintain a cautious outlook on Klarna's financial performance, as the high revenue expectations are tempered by the negative EPS, indicating ongoing challenges in profitability that could impact investor confidence and stock performance.
- Industry Position: As a disruptor in the Buy Now Pay Later (BNPL) and digital banking sectors, Klarna is actively expanding its market share, particularly through its partnership with Coinbase to enable USDC-denominated funding, showcasing its innovative capabilities in the fintech space.
- Future Outlook: Klarna's growth potential is widely recognized, and despite profitability pressures, its expansion in digital banking and collaborations with major tech companies may lay the groundwork for future financial improvements.
See More
Klarna Group Shares Plunge 26.91% After Q4 Miss
- Earnings Miss: Klarna Group's Q4 results fell short of expectations, leading to a 26.91% drop in stock price to $13.84, reflecting challenges with higher credit provisions and slower near-term growth.
- Surge in Trading Volume: The trading volume reached 44.6 million shares, approximately 1,159% above the three-month average, indicating heightened market attention and volatility regarding Klarna's future performance.
- Increased Credit Loss Provisions: Klarna's provision for credit losses surged 59% year-over-year, exacerbating investor concerns and putting greater pressure on the company's future profitability, which affects market confidence in its long-term growth.
- Significant User Growth: Despite challenges, Klarna's banking operations doubled its active consumer count to 15.8 million after launching debit cards and bank accounts in the U.S., showcasing its market potential, though investment risks remain high.
See More
Klarna Group Shares Plunge 26.95% After Q4 Miss
- Earnings Miss: Klarna Group's Q4 results fell short of expectations, leading to a 26.95% drop in stock price to $13.84, reflecting investor concerns about future growth, particularly with rising credit loss provisions.
- Surge in Trading Volume: The company's stock trading volume reached 44.6 million shares, a staggering 1,159% increase over the three-month average of 3.5 million shares, indicating heightened market scrutiny of its financial health, which could impact future investor confidence.
- Strong User Growth: Despite challenges, Klarna reported revenue, merchant, and active user growth of 38%, 42%, and 28% respectively, with active consumers reaching 15.8 million, suggesting that the company still holds potential and appeal in the market.
- Investment Caution: Since its IPO in 2025, Klarna's stock has fallen 70%, prompting analysts to advise risk-tolerant investors to wait a few quarters to assess improvements in profitability and market performance before investing.
See More
Klarna IPO Securities Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds purchasers of Klarna Group plc securities related to the September 2025 IPO of an important lead plaintiff deadline on February 20, 2026, for the filed class action lawsuit.
- Compensation Opportunity: Investors who purchased Klarna securities may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement, providing a potential financial recovery for affected investors.
- Choosing Legal Representation: The firm emphasizes the importance of selecting qualified counsel with a successful track record, noting that many firms issuing notices may lack the necessary resources and experience to effectively represent investors.
- Lawsuit Details: The lawsuit alleges that the Registration Statement contained false and misleading statements regarding Klarna's loss reserves, which were materially understated, resulting in investor damages once the true information became public.
See More
KLARNA STOCK PLUMMETS 23% FOLLOWING Q4 REPORT
- Company Performance: KARNASHARE reported a 23% decline in its stock price following the release of its Q4 results.
- Market Reaction: The significant drop in stock value indicates investor concerns regarding the company's financial performance and future outlook.
- Financial Results: Details of the Q4 results that led to the stock decline have not been specified, but they likely included disappointing earnings or revenue figures.
- Investor Sentiment: The reaction from the market suggests a lack of confidence in KARNASHARE's ability to recover or improve in the near term.
See More
Klarna Achieves Over $1 Billion in Quarterly Revenue for the First Time, Yet Stock Prices Continue to Decline.
- Klarna's Revenue Milestone: Klarna reported its first billion-dollar revenue quarter, marking a significant achievement for the Swedish buy now, pay later provider.
- Investor Reaction: Despite the milestone, the stock market response suggests that investors were not particularly impressed with the results.
See More
Klarna to Announce Q4 Earnings on February 19
- Earnings Announcement Schedule: Klarna is set to release its Q4 2023 earnings report on February 19 before the market opens, with consensus estimates predicting an EPS of -$0.02 and revenue of $1.07 billion, providing investors with crucial insights into the company's financial health.
- Market Expectation Analysis: Analysts maintain a cautious outlook on Klarna's financial performance, as the high revenue expectations are tempered by the negative EPS, indicating ongoing challenges in profitability that could impact investor confidence and stock performance.
- Industry Position: As a disruptor in the Buy Now Pay Later (BNPL) and digital banking sectors, Klarna is actively expanding its market share, particularly through its partnership with Coinbase to enable USDC-denominated funding, showcasing its innovative capabilities in the fintech space.
- Future Outlook: Klarna's growth potential is widely recognized, and despite profitability pressures, its expansion in digital banking and collaborations with major tech companies may lay the groundwork for future financial improvements.
See More
Klarna Group Shares Plunge 26.91% After Q4 Miss
- Earnings Miss: Klarna Group's Q4 results fell short of expectations, leading to a 26.91% drop in stock price to $13.84, reflecting challenges with higher credit provisions and slower near-term growth.
- Surge in Trading Volume: The trading volume reached 44.6 million shares, approximately 1,159% above the three-month average, indicating heightened market attention and volatility regarding Klarna's future performance.
- Increased Credit Loss Provisions: Klarna's provision for credit losses surged 59% year-over-year, exacerbating investor concerns and putting greater pressure on the company's future profitability, which affects market confidence in its long-term growth.
- Significant User Growth: Despite challenges, Klarna's banking operations doubled its active consumer count to 15.8 million after launching debit cards and bank accounts in the U.S., showcasing its market potential, though investment risks remain high.
See More
Klarna Group Shares Plunge 26.95% After Q4 Miss
- Earnings Miss: Klarna Group's Q4 results fell short of expectations, leading to a 26.95% drop in stock price to $13.84, reflecting investor concerns about future growth, particularly with rising credit loss provisions.
- Surge in Trading Volume: The company's stock trading volume reached 44.6 million shares, a staggering 1,159% increase over the three-month average of 3.5 million shares, indicating heightened market scrutiny of its financial health, which could impact future investor confidence.
- Strong User Growth: Despite challenges, Klarna reported revenue, merchant, and active user growth of 38%, 42%, and 28% respectively, with active consumers reaching 15.8 million, suggesting that the company still holds potential and appeal in the market.
- Investment Caution: Since its IPO in 2025, Klarna's stock has fallen 70%, prompting analysts to advise risk-tolerant investors to wait a few quarters to assess improvements in profitability and market performance before investing.
See More
Klarna IPO Securities Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds purchasers of Klarna Group plc securities related to the September 2025 IPO of an important lead plaintiff deadline on February 20, 2026, for the filed class action lawsuit.
- Compensation Opportunity: Investors who purchased Klarna securities may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement, providing a potential financial recovery for affected investors.
- Choosing Legal Representation: The firm emphasizes the importance of selecting qualified counsel with a successful track record, noting that many firms issuing notices may lack the necessary resources and experience to effectively represent investors.
- Lawsuit Details: The lawsuit alleges that the Registration Statement contained false and misleading statements regarding Klarna's loss reserves, which were materially understated, resulting in investor damages once the true information became public.
See More
