Klarna: Buy The Dip As Margin Economics Improve

Gary Alexander 34.36K Followers Follow Summary Klarna Group plc shares plunged ~20% after a full-year outlook cut, driven by German macro softness. Despite heightened macro risk, I maintain a Buy rating based on KLAR's compelling long-term growth prospects. Recent earnings volatility reflects heightened investor sensitivity to growth and guidance at market highs. New partnerships and monetization streams are expected to offset near-term headwinds and support the investment thesis. hapabapa/iStock Editorial via Getty Images The second-quarter earnings season has been decidedly volatile, which makes perfect sense amid all-time market highs: investors have been spooked by any whiffs of growth stumbles or guidance cuts, and negative earnings reactions have been heavily pronounced. This article was written by Gary Alexander 34.36K Followers Follow With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood. Analyst’s Disclosure: I/we have a beneficial long position in the shares of KLAR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.