Klarna Group plc's stock plummeted 5.02% during intraday trading on Friday, extending recent losses for the Swedish fintech company.

The sharp decline follows a series of analyst price target reductions from major financial institutions. Morgan Stanley cut its target to $16 from $23, JP Morgan reduced its target to $20 from $40, Wedbush lowered its target to $20 from $45, BofA decreased its target to $37 from $46, and KBW reduced its target to $26 from $45.

These downgrades come after Klarna reported disappointing fourth-quarter 2025 results, marking its second consecutive quarter of pre-tax losses since its IPO. While the company achieved its first-ever quarter with revenue exceeding $1 billion, it posted a pre-tax loss of $241 million, with costs from its transition to a digital bank and provisions for credit losses weighing on profitability. The stock had already tumbled approximately 27% following the earnings release earlier in the week.