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How to buy Klarna stock when it goes public

Here's everything we know so far about the Klarna IPO.

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Klarna, a buy now, pay later e-commerce fintech company, is expected to conduct an initial public offering.

There's no news yet about how much the stock will cost when it goes public. No date has been set for when the stock will be publicly available.

What we know about the Klarna IPO

The buy now, pay later e-commerce giant Klarna is expected to go public. It has not yet filed a viewable form S-1 with the US Securities and Exchange Commission. But we'll update this page as information as it becomes available.

Klarna is a Swedish fintech company that lets customers purchase products from major retailers and then pay for those items in four zero-interest payments. As of December 2020, it has reached more than 11 million customers in the US.

It partners with major brands such as Macy’s, Adidas and Sephora.

According to its website, Klarna is the most highly valued fintech company in Europe and the fourth-highest in the world, bringing its valuation to about $10.65 billion.

Klarna is among the latest buy now, pay later companies to emerge. Affirm, one of its competitors, announced in late December that it plans to postpone its IPO until January 2021.

How to buy shares in Klarna when it goes public

Once Klarna goes public, you'll need a brokerage account to invest. Consider opening a brokerage account today so you're ready as soon as the stock hits the market.

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Klarna. Find the stock by name or ticker symbol. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until Klarna reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Klarna, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Klarna. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

What we know about Klarna’s balance sheet

Officially known as Klarna Bank, this alternative to credit card issuers now has more than 190,000 merchant partners worldwide.

In the quarter ending September 2020, the company reported net operating income growth of $742 million, a 37% increase from the previous period. The quarter has other highlights as well.

  • 160% growth in year-over-year mobile app downloads and 2 million monthly active app users by the end of October
  • 21 million new customers worldwide
  • 57,000 new retail partners including Etsy, Ralph Lauren and Express.

How do similar companies perform?

It's impossible to predict how any stock will perform — and IPOs can be particularly volatile. But evaluating the performance of companies like Klarna can be useful in determining how the market is performing and whether now is a good time to invest in this industry. Select a company to learn more about what they do and how their stock performs, including market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

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