Wall Street Breakfast Klarna pops on NYSE debut
8 snips
Sep 10, 2025 Klarna makes a splash on the NYSE after raising $1.37 billion, kicking off with strong trading performance. Meanwhile, wholesale inflation cools down, hinting at possible shifts in consumer prices. GameStop sees its cash reserves skyrocket to a staggering $8.7 billion, raising eyebrows about future maneuvers. Retailers are also in focus, with improved balance sheets fueling discussions on investments and market predictions driven by innovative technologies like AI.
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Klarna's Price Reflects Lower Expectations
- Klarna priced IPO at $40 and opened above $52, valuing it near $15.1B, far below its 2021 peak.
- Seeking Alpha warned the valuation assumes aggressive growth and margin gains that may be unlikely.
Sales Growth Can Mask GAAP Weakness
- Chewy reported better sales but GAAP profit plunged due to a $79.1M compensation and tax-related expense.
- High sales growth can still mask weak unadjusted earnings and disappoint investors focused on GAAP results.
Design Tool Stocks Face Execution Headwinds
- Synopsis fell after weaker Q3 results and a sour outlook tied to design IP and China restrictions.
- Analysts noted shifting roadmaps and resource challenges undermining prior expectations.