Klarna Stock Drops 10% Post-Earnings Despite Revenue Beat
Klarna Group's shares fell sharply after its debut earnings report as a public company, underscoring Wall Street's unforgiving reaction to near-misses. The Swedish fintech firm posted $0.25 EPS—a penny shy of estimates—while revenue of $903 million surpassed expectations. Gross merchandise volume surged 43% to $32.7 billion, signaling robust platform activity.
Investors appear focused on rising credit risks as Klarna's installment payment products gain traction. Over four million users adopted its hybrid debit-credit card since July, accelerating BNPL exposure. The selloff reflects growing concerns about consumer credit quality in inflationary environments, despite Klarna's top-line momentum.