Buy now, sell-off later: Where did Klarna’s IPO go wrong?

cityam

Feb 20

Klarna's IPO launched in September 2025. (Image: Klarna), When Klarna finally kicked off its Wall Street listing in September chatter quickly emerged whether the move would open the floodgates to a ...

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(Image: Klarna), When Klarna finally kicked off its Wall Street listing in September chatter quickly emerged whether the move would open the floodgates to a ...</p>\n\n<a href=\"https://www.cityam.com/buy-now-sell-off-later-where-did-klarnas-ipo-go-wrong/\">Source Link</a>\n\n</div>\n","source":"cityam_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Buy now, sell-off later: Where did Klarna’s IPO go wrong?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBuy now, sell-off later: Where did Klarna’s IPO go wrong?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-20 22:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityam.com/buy-now-sell-off-later-where-did-klarnas-ipo-go-wrong/><strong>cityam</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Klarna's IPO launched in September 2025. (Image: Klarna), When Klarna finally kicked off its Wall Street listing in September chatter quickly emerged whether the move would open the floodgates to a ...</p>\n\n<a href=\"https://www.cityam.com/buy-now-sell-off-later-where-did-klarnas-ipo-go-wrong/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4227","symbol_name":"交易和支付处理服务","start_time":0,"source_url":"https://www.cityam.com/buy-now-sell-off-later-where-did-klarnas-ipo-go-wrong/","article_id":"2612260374","we_media_id":null,"thumbnails":["https://www.cityam.com/wp-content/uploads/2026/02/Klarna_IPO_trading_7.jpeg?w=824&h=463&crop=1"],"rights":{"source":"cityam_highlight","url":"https://www.cityam.com/buy-now-sell-off-later-where-did-klarnas-ipo-go-wrong/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2612260374","pubTimestamp":1771597105,"columns":[],"sourceInfo":{"source_id":"cityam_highlight","name":"cityam"},"weMediaInfo":null,"summary":"Klarna's IPO launched in September 2025. , When Klarna finally kicked off its Wall Street listing in September chatter quickly emerged whether the move would open the floodgates to a fleet of fintech listings.With the likes of Monzo, Zilch, Revolut and Starling all speculated to be eagerly waiting in the wings, all eyes were on the Swedish unicorn as a taster of investors’ appetite for fintech firms.And for a moment the momentum looked to be on the pay later pioneer’s side. Klarna’s stock popped 15 per cent from its 20 times oversubscribed IPO and the firm closed its first trading session at $45.82, from $40 at open, after raising $222m.While rumblings of an influx of fintech listings ran rife, it didn’t take long for cracks to rapidly start forming.Though investors didn’t seem soothed by the comments – or the firm’s first $1bn quarter – with Klarna’s stock tumbling 27 per cent following the fourth-quarter release.The brui","collect":0,"end_time":0,"defaultTopTitle":"cityam.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4227":"交易和支付处理服务","KLAR":"Klarna Group plc"},"translate_title":"现在买入，以后抛售：Klarna的IPO哪里出了问题？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KLAR":1.5},"content_text":"Klarna's IPO launched in September 2025. (Image: Klarna), When Klarna finally kicked off its Wall Street listing in September chatter quickly emerged whether the move would open the floodgates to a fleet of fintech listings.With the likes of Monzo, Zilch, Revolut and Starling all speculated to be eagerly waiting in the wings, all eyes were on the Swedish unicorn as a taster of investors’ appetite for fintech firms. And for a moment the momentum looked to be on the pay later pioneer’s side. Klarna’s stock popped 15 per cent from its 20 times oversubscribed IPO and the firm closed its first trading session at $45.82, from $40 at open, after raising $222m.While rumblings of an influx of fintech listings ran rife, it didn’t take long for cracks to rapidly start forming. \n\nSix months after its IPO, Klarna’s stock has shed over 67 per cent, its share price has sunk to around $14 and the firm’s value has been slashed to just over $5.2bn (£3.9bn) from $15bn, a drop which could have pushed the firm out of the FTSE 100 index had it instead chosen to float in London.\n\n\n\n\n\n\nNews Updates\nStay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nThe dire performance has left the fintech ecosystem with a bated breath for future listings as they conduct an autopsy on where it all went wrong for Stockholm’s hot pink payments giant.Ahead of the New York float, analysts had raised concerns about the $15bn (£11.3bn) price tag. Philip Atkinson, analyst at Thirdbridge, told City AM the valuation was a major haircut “beneath experts’ estimations of £18.5bn to £22.15bn” and could be viewed as a “bargain price”.\nKlarna swallows the cost of becoming a bankThe landmark listing – which was delayed to the second half of the year after President Donald Trump’s tariff offensive – came as Klarna ploughed onward with its transition to ditch its buy now, pay later label and become a digital bank.\n\nBut the costs in this endeavour have eaten away at the firm’s bottom line. Klarna made a loss of $62m in the final quarter of 2025 and $273m for the full-year.“Klarna’s post-listing woes have gone from bad to worse with disappointing earnings today compounding an already poor start to life as a public company,” Samuel Kerr, head of global equity capital markets at M&A data service Mergermarkets.Blame was quickly put down to the growing fair finance product, which requires a lump of cash to be set aside for credit losses on day one of issuing a new banking loan. Co-founder and chief executive Sebastian Siemiatkowski said growth outpacing expectations had meant those day-one provisions “temporarily weigh on margins, even when credit equality remains strong and lifetime economics are attractive”.\n\nThough investors didn’t seem soothed by the comments – or the firm’s first $1bn quarter – with Klarna’s stock tumbling 27 per cent following the fourth-quarter release. The bruising fall left a “challenge for company bosses to maintain investor confidence,” said AJ Bell head of financial analysis Danni Hewson.“Whilst promises of jam tomorrow are frustrating for those who’d rather enjoy their jam today, the company is growing rapidly and navigating away from the short-term loans to cover retail purchases that it is best known for.”Hewson added there would also be concern around the ability for consumers to keep up to date with payments due to “pressures from the uncomfortable cost of living”.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}