Why did Klarna stock drop sharply after Q3 earnings?

Klarna's stock fell nearly 10% after reporting a $95 million net loss for its fiscal third quarter, down from a profit last year.

Is Klarna's Q3 loss a sign of deeper problems?

Management attributes the loss to an accounting timing issue, stating that operational efficiency actually improved during the quarter.

What is the Wall Street outlook for Klarna stock?

Wall Street analysts maintain a 'Moderate Buy' consensus on Klarna stock, with a mean target price suggesting significant potential upside.

Home / Business and Economy / Klarna Stock Plunges Amidst $95M Quarterly Loss

Klarna Stock Plunges Amidst $95M Quarterly Loss

21 Nov

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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 Stock Plunges Amidst $95M Quarterly Loss

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.