Movement Alert|Klarna Group plc Falls 5.02% in Regular Trading, Guidance Cut and JPMorgan Downgrade Weigh on Shares

Market Focus
Aug 21

On August 21, Klarna Group plc declined 5.02% in regular trading, trading at $14.00 per share with turnover of approximately $97.56 million, extending a multi-day selloff.

The decline follows JPMorgan's downgrade on August 19, cutting Klarna from Overweight to Neutral with a price target reduction from $22 to $18, citing a weakening second-half outlook, deteriorating European consumer spending, and planned departures of both the CFO and CMO in early 2027. This came on the heels of Klarna's Q2 earnings release on August 18, in which the company beat estimates on both revenue ($1.04B vs. $996.5M expected) and EPS ($0.01 vs. -$0.06 expected), but sharply lowered full-year 2026 revenue guidance to $4.08B-$4.16B, well below analyst expectations of $4.42B. Third-quarter revenue guidance of $940M-$980M also fell significantly short of the $1.11B consensus. Soft German consumer spending was cited as the primary headwind behind the reduced outlook.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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