On September 10, 2025, a screen at the New York Stock Exchange displayed the Klarna logo during the Swedish fintech firm's IPO. JPMorgan has downgraded Klarna (KLAR) shares from Overweight to Neutral, while trimming the price target from $22 to $18.

Analyst Connor Allen explained in a research note: "Since Klarna's IPO last year, the business has seen several ups and downs, and we have chosen to adopt a wait-and-see stance. We find it difficult to discern the company's medium-term trajectory; it will need to deliver multiple consecutive quarters of solid and clean operating results to rebuild investor confidence and close the valuation gap with top-tier industry peers."

Allen attributed the lowered second-half performance estimates primarily to a weaker macroeconomic outlook for Europe, where slowing discretionary consumer spending has made Germany a core drag, though not the only one. He added: "Ultimately, we believe the company will need more time to rebuild investor trust, and our conviction in its medium-term trends has declined."