Klarna Group (NYSE:KLAR) Trading 7.9% Higher – What’s Next?

Shares of Klarna Group plc (NYSE:KLAR) rose 7.9% on Tuesday . The company traded as high as $19.64 and last traded at $19.5490. Approximately 2,298,258 shares were traded during mid-day trading, a decline of 26% from the average daily volume of 3,112,165 shares. The stock had previously closed at $18.11.

Klarna Group News Roundup

Here are the key news stories impacting Klarna Group this week:

• Positive Sentiment: Klarna delivered its first $1 billion quarter (revenue up ~38%), GMV topped guidance and banking customers more than doubled, showing accelerating U.S. adoption and deeper monetization of its payments-to-bank strategy. Klarna Accelerates U.S. Growth and Delivers $1bn Revenue Driven by Rapid Banking Service Adoption
• Neutral Sentiment: The company issued Q1 revenue guidance of $900M–$980M (consensus ~ $972M), which leaves room for upside at the top end but the midpoint is roughly in line to slightly below Street estimates — a mixed datapoint for near-term expectations. Klarna (KLAR) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: EPS missed materially (reported -$0.18 vs. -$0.03 expected) and the company swung to a quarterly loss amid higher credit costs — headlines focused on the profit miss and the stock fell sharply. Stock Market Today, Feb. 19: Klarna Group Shares Plunge After Q4 Results Miss Forecasts
• Negative Sentiment: Multiple law firms have filed or circulated notices about securities-class-action claims tied to Klarna’s September 2025 IPO; the surge of litigation notices and a looming lead‑plaintiff deadline raise legal overhang and potential costs/uncertainty for shareholders. INVESTOR ALERT: Pomerantz Law Firm Reminds Investors with Losses on their Investment in Klarna Group PLC of Class Action Lawsuit and Upcoming Deadlines – KLAR
• Negative Sentiment: Analysts reacted: Morgan Stanley cut its price target significantly (from $39 to $23) and moved to an equal‑weight stance, reflecting increased near-term risk and contributing to downward pressure on the stock. Benzinga

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Bank of America dropped their target price on Klarna Group from $51.00 to $46.00 and set a “buy” rating for the company in a report on Tuesday, November 18th. Wolfe Research lowered their target price on Klarna Group from $50.00 to $45.00 and set an “outperform” rating for the company in a report on Wednesday, November 19th. Wall Street Zen upgraded shares of Klarna Group from a “sell” rating to a “hold” rating in a report on Saturday, January 31st. Weiss Ratings reissued a “sell (e+)” rating on shares of Klarna Group in a research note on Monday, December 29th. Finally, Wells Fargo & Company started coverage on Klarna Group in a research note on Wednesday, October 22nd. They issued an “overweight” rating and a $45.00 target price for the company. Eleven analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Klarna Group has a consensus rating of “Moderate Buy” and a consensus target price of $45.53.

Klarna Group Stock Performance

The firm has a market cap of $9.96 billion and a P/E ratio of -21.35. The business has a 50-day simple moving average of $26.40.

Hedge Funds Weigh In On Klarna Group

Several hedge funds and other institutional investors have recently bought and sold shares of KLAR. SC US Ttgp LTD. bought a new stake in shares of Klarna Group during the 3rd quarter worth approximately $2,016,821,000. Commonwealth Bank of Australia bought a new stake in shares of Klarna Group during the fourth quarter worth $503,243,000. Wellington Management Group LLP purchased a new stake in shares of Klarna Group during the third quarter valued at $348,834,000. Dragoneer Investment Group LLC bought a new position in shares of Klarna Group in the third quarter worth about $303,595,000. Finally, Scge Management L.P. purchased a new position in Klarna Group in the 3rd quarter worth about $193,018,000.

About Klarna Group

Klarna Group is a global payments provider specializing in “buy now, pay later” (BNPL) solutions for online and in-store shoppers. The company partners with merchants to offer flexible payment options, including interest-free installments and deferred payments, aiming to enhance conversion rates and customer loyalty. Klarna’s platform integrates risk assessment, fraud prevention, and a one-click checkout experience to streamline transactions for both retailers and consumers.

Through its digital wallet and mobile app, Klarna enables users to manage purchases, track spending and access exclusive shopping offers from partner merchants.