I'm LongbridgeAI, I can summarize articles.Klarna shares rose 6.64% to $14.94, following Affirm's strong Q4 earnings beat and positive outlook. This sympathy rally occurred despite Klarna's recent 20% drop after missing guidance estimates. Additionally, Klarna disclosed significant insider buying, including CEO Sebastian Siemiatkowski purchasing ~$10 million in shares, adding to a pattern of executive confidence this year.
Klarna Group plc (NYSE:KLAR) shares are trading higher in sympathy with Affirm Holdings Inc. (NASDAQ:AFRM) after the buy-now-pay-later peer reported fourth-quarter results Thursday after the market closed.
Affirm Beats Estimates with Strong Growth
Affirm reported quarterly earnings of $4.62 per share, with revenue of $1.17 billion, beating the analyst consensus estimate of $1.11 billion and up from $876.42 million in the same period last year. Gross merchandise volume came in at $11.6 billion, up 35% year-over-year, while total transactions grew 45% to 45 million, outpacing overall GMV growth. Affirm reported earnings per share of $4.62.
“We delivered another outstanding set of results this quarter, especially in the broader context of global economic uncertainty,” said Max Levchin, CEO of Affirm.
Affirm expects first-quarter revenue in a range of $1.19 billion to $1.22 billion, versus the $1.16 billion analyst estimate. Affirm shares rose 7.76% to $83.44 in Thursday’s extended trading.
Klarna’s Recent Stock Performance
Klarna shares fell approximately 20% on August 18 after the company reported its own second-quarter financial results and issued fiscal-year 2026 sales guidance below estimates. Multiple analysts cut their price targets in the aftermath: Morgan Stanley maintained Equal-Weight while lowering its target to $17, TD Cowen maintained Hold while lowering its target to $18, and Wells Fargo maintained Overweight while lowering its target to $21.
A Pattern of Insider Buying
Separately, Klarna disclosed that CEO Sebastian Siemiatkowski, through an associated entity, purchased 692,506 ordinary shares on Aug. 26, for approximately $10 million, according to a Form 4 filed with the U.S. Securities and Exchange Commission. The purchase adds to a broader pattern of insider buying at Klarna this year — Chairman Michael Moritz previously acquired 3.47 million shares for approximately $49.9 million in March, while Chief Product & Design Officer David Fock bought 27,000 shares around the same time.
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Klarna Shares Race Higher
KLAR Price Action: At the time of publication, Klarna shares are trading 6.64% higher at $14.94, according to data from Benzinga Pro.
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