Key Takeaway

Klarna’s stock plummeted 22% on August 18, 2026, wiping out nearly $4 billion in market value in a single trading session. The dramatic selloff came after the Swedish buy-now-pay-later (BNPL) pioneer slashed its full-year guidance, citing weakening consumer spending in Germany—its largest market by volume. Despite beating Wall Street’s earnings expectations with revenue of $1.04 billion (up 27% year-over-year) and posting a surprise profit of $0.01 per share versus an expected loss of $0.05, investors focused squarely on the reduced outlook.

The company lowered its 2026 gross merchandise value (GMV) guidance to $149-$151 billion from over $155 billion previously, while revenue guidance was trimmed to $4.08-$4.16 billion…