Home / Business and Economy / Klarna Stock Plunges Amidst $95M Quarterly Loss
Klarna Stock Plunges Amidst $95M Quarterly Loss
21 Nov
Summary
- Klarna reported a $95 million net loss in Q3, a sharp decline from the previous year.
- Despite the loss, management attributes it to accounting timing, citing operational improvements.
- Klarna Card launch successful, with CEO calling it historic and valuation attractive.
Klarna's stock saw a significant decline of nearly 10% on November 18, after the buy-now-pay-later firm disclosed a $95 million net loss for its fiscal third quarter. This marks a substantial downturn from the $12 million net income recorded in the same period last year, pushing KLAR shares down over 25% from their initial public offering price and into oversold territory according to RSI indicators.
Despite the recent selloff, long-term investors may find Klarna stock appealing. Management attributed the quarterly loss to an accounting timing issue, emphasizing that underlying operational efficiency actually improved during Q3. The company also celebrated the Klarna Card's remarkable success, achieving 4 million sign-ups in under four months and being hailed as a historic launch by CEO Sebastian Siemiatkowski.
Klarna's unique ability to adjust its underwriting and refresh its balance sheet quickly remains an underappreciated asset. Furthermore, the company's AI-enabled tools and a price-sales multiple of 4.15x make it a more affordable investment compared to fintech peers. Wall Street sentiment remains positive, with a consensus 'Moderate Buy' rating and a mean target price indicating significant potential upside.
