Jim Cramer advised investors to avoid Klarna Group (KLAR) during a recent segment on the payments sector. He explicitly rejected the buy-now-pay-later firm. Cramer recommended competitor Affirm as a superior alternative in the industry.
Klarna stock has declined approximately 53% year-to-date. Shares have fallen about 70% since the September 2025 initial public offering.
The company reported a full-year net loss of $273 million for 2025. Klarna projects its first adjusted operating profit for the first quarter of 2026. Analysts describe the projected margin as razor-thin for a firm that continues to burn cash. Market sentiment remains bearish toward the company.