We recently published 10 Stocks On Jim Cramer’s Mind & His Thoughts On Enterprise AI. Klarna Group (NYSE:KLAR) is one of the stocks on Jim Cramer’s mind.
Klarna Group (NYSE:KLAR) is a Swedish technology company that works in the digital banking and payments industries. Its shares are down by 71% since their IPO in September last year and by 54% year-to-date. Earlier this week, Klarna Group (NYSE:KLAR)’s stock dropped by close to 25% after the firm reported its fourth-quarter earnings. The results saw the firm post $1.08 billion in revenue and $0.19 in loss per share. While Klarna Group (NYSE:KLAR)’s revenue beat analyst estimates of $1.07 billion, the loss per share was steeper than the estimates of $0.02. However, the firm’s US business was a strong performer as revenue grew by 58% driven by the firm’s Fair Financing product, which grew sales by a strong 165%. The quarter was also Klarna Group (NYSE:KLAR)’s first one that saw it bring in $1 billion in sales. Ahead of the earnings, Keefe Bruyette lowered the share price target to $45 from $52 and kept an Outperform rating. As for Cramer, the CNBC TV host focused on the EPS as he remarked in a tweet:
Copyright: dotshock / 123RF Stock Photo
“Klarna doesn’t even mention eps in its release. Talk about the old days.. Give me a break.”
While we acknowledge the potential of KLAR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
