Launching on the New York Stock Exchange (NYSE), Klarna (NYSE:KLAR) had raised $1.4 billion during its IPO. The BNPL's debut also enjoyed a strong pop, selling shares at $40, above its announced range of $35 to $37, before opening at $52.
While the initial furor surrounding Klarna eventually settled around the $46 mark, the company's opening valuation of $15 billion has steadily climbed to $17 billion. So, what's next for the stock?
Measuring Klarna
Klarna is one of the biggest names in the BNPL market, which has grown in popularity among consumers in recent years.
In 2024, 128 million US adults used buy now, pay later services, amounting to $340 billion in global transaction value last year. Transaction values are expected to accelerate at a CAGR of 12.3% through 2030, with Klarna likely to be a key beneficiary of this market growth.
Another positive for Klarna is that younger consumers are frequent users. By late 2024, 44% of Gen Z and 47% of millennials reported BNPL usage, while 38% of all US consumers claimed to use the payment service.
According to CNBC's Jim Cramer, Klarna's performance should be a cause for optimism among investors.
The Mad Money host looked to the fintech's offerings aside from BNPL, such as consumer financing and spending management insights, to illustrate that Klarna has plenty to offer users. The company also has strong revenue streams from advertising, budgeting tools, and interest payments from traditional lending.
Crucially, Klarna had also ...
