Klarna’s Big Debut: IPO Soars, But Alternative Data Tells a Mixed Story

September 10, 1:22 pm

Klarna, the Swedish fintech pioneer best known for its “buy now, pay later” services, has officially gone public under the ticker KLAR - and it made quite the entrance.

In one of the most anticipated IPOs of the year, Klarna shares surged 30% on their debut on the New York Stock Exchange, opening at $52 after being priced at $40. The company raised $1.37 billion in the offering, securing a $15 billion valuation. This puts Klarna in league with other major tech players that have recently gone public, such as Circle and Figma, which also experienced significant demand from investors.

AltIndex members can now track Klarna directly through our platform, gaining access to thousands of alternative data points and AI-generated insights that can guide smarter investment decisions.

Klarna's IPO: Another Strong Entry

The strong debut reflects a broader resurgence in the IPO market, particularly among high-growth tech and fintech companies. Klarna’s successful public listing also brings renewed attention to the evolving landscape of digital finance.

Led by CEO Sebastian Siemiatkowski, Klarna has steadily expanded beyond its roots in deferred payments. In recent months, the company has emphasized its pivot toward full-fledged banking services in the U.S., including the rollout of its Klarna Card. With over 700,000 card users already onboard and 5 million more on the waiting list, Klarna is aiming to become a household name in American consumer finance. Siemiatkowski has positioned the Klarna Card as a distinct alternative to Affirm’s product, offering more flexibility and appealing to a different type of customer.

Still, Klarna faces competition from major players such as Affirm and Afterpay, the latter of which was acquired by Block (formerly Square) for $29 billion in 2021. The BNPL space is getting crowded, and regulatory scrutiny is beginning to increase - especially in the U.K., where lawmakers have proposed bringing these lending models under tighter oversight due to concerns over consumer affordability.

Alternative Data: What Investors Should Be Watching

While Klarna’s IPO performance was impressive, alternative data paints a more nuanced picture of the company’s momentum. Investors on AltIndex now have access to Klarna’s full alternative data profile, revealing trends and warning signs that go beyond headlines and earnings reports.

Web Traffic Is Declining

Over the past few months, Klarna.com has seen a noticeable drop in visitor numbers. According to AltIndex estimates, traffic is down 7.5%. This could suggest waning interest in the company’s core services or a slowdown in user acquisition.

App Downloads Are Slipping

Mobile engagement, a key metric for fintech platforms, is also showing signs of weakness. Klarna's app downloads have been trending downward, raising questions about the effectiveness of its growth strategy and marketing efforts post-IPO.

Employee Sentiment Is Lukewarm

On AltIndex, employee reviews offer insight into internal morale and business outlook. Currently, only 41% of Klarna employees report a positive outlook for the company's future. That number is relatively low compared to other tech peers and could point to concerns around internal operations or direction.

Social Media Growth Is Flat or Negative

Klarna’s social following, often used as a proxy for brand momentum, is not growing at a healthy pace. On Instagram, the company has 742,000 followers but has lost 3% of them in the past 12 months. Similar stagnation is observed on Facebook, Twitter (now X), and YouTube, where subscriber growth has either plateaued or declined. For a consumer-focused fintech brand, this kind of social footprint erosion is a red flag.

Reddit Buzz Peaked Around IPO

The one bright spot in alternative data was a surge in Reddit mentions. Leading up to and immediately after the IPO, AltIndex detected a large volume of positive chatter across Reddit communities. Many users expressed enthusiasm about buying into the IPO and holding the stock long-term. With our Reddit alerts, our members were alerted in real time, highlighting that the volume and sentiment of Reddit discussions were unusually high, indicating short-term retail interest.

Klarna on AltIndex

AltIndex now offers full alternative data tracking for Klarna. Investors can explore historical data trends, set alerts for significant shifts in web traffic, social engagement, job postings, app activity, and Reddit sentiment. This empowers our members to detect underlying signals that may impact stock performance before the rest of the market catches on.

Klarna’s IPO may have captured the attention of Wall Street, but as with every stock, the real story unfolds in the months that follow. With regulatory uncertainty, fierce competition, and mixed engagement trends, Klarna’s next chapter is far from guaranteed. AltIndex members now have the tools to stay ahead of the curve.

Want to stay updated on Klarna and other trending stocks?
Sign up and add Klarna to your AltIndex portfolio today and receive real-time alerts and alternative data insights.

Get More Insights

Sign up and get access to a personalized dashboard, deeper insights, AI stock picks, stock alerts, weekly newsletter and much more.