Stock Market Today, Feb. 19: Klarna Group Shares Plunge After Q4 Results Miss Forecasts

2026-02-19 17:37:07 ET

Klarna Group (NYSE:KLAR) , a digital bank and flexible payments provider, closed Thursday at $13.84, down 26.95%. The stock dropped after Q4 results missed forecasts and guidance pointed to slower near?term growth with higher credit provisions. Investors are watching to see whether margins can improve as the company matures. Trading volume reached 44.6 million shares, about 1,159% above its three-month average of 3.5 million shares. Klarna Group IPO'd in 2025 and has fallen 70% since going public.

The S&P 500 slipped 0.29% to 6,862, while the Nasdaq Composite declined 0.31% to 22,683. Industry peer Affirm closed at $51.82, up 0.23%, underscoring diverging reactions to recent funding and growth narratives across the space.

Down roughly 70% in just six months since its IPO, buy-now-pay-later upstart Klarna is a prime example of why investors may want to give newly public stocks a few quarters to prove themselves before buying. While Klarna grew revenue, merchants, and active users by 38%, 42%, and 28%, respectively, during the quarter, it fell short of estimates.

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