Aug. 19 at 9:50 AM
$KLAR is starting to look seriously undervalued here.
The market wiped nearly 25% off the company despite revenue growing 27%, GMV 18% and transaction margin dollars 42%. Klarna also delivered a
$9M profit when Wall Street expected a loss.
Yes, guidance came down, largely due to weakness in Germany and FX. Yet Klarna actually RAISED its full-year transaction margin guidance, while US GMV continues growing 27%.
Now analysts are adjusting their targets after the sell-off, yet those revised targets still sit above the current share price.
A guidance cut justified caution. It didn't suddenly erase Klarna's growth, improving margins or profitability.
Nearly 23% wiped out in one session? I think the market massively overreacted.
