Private Fintech Klarna's Valuation Is Taking a $16 Billion Hit: What Does This Mean for Buy Now Pay Later?
After a rapid expansion of the stock market in 2020 and into 2021, stocks have faced a steep challenge this year. Since the start of the year, the S&P 500 is down 17%. Growth stocks and stocks that have yet to turn a profit are taking the biggest hits. Financial technology, or fintech, companies have been hit hard. A popular tracker, the ARK Fintech Innovation ETF, which invests in financially innovative companies, is down 54% year to date.
Investors have had to deal with inflationary pressures, geopolitical conflict, and rising interest rates, all of which have put pressure on the economy. One private fintech feeling the pain from the current economic backdrop is Swedish "buy now, pay later" (BNPL) firm Klarna. The company recently announced layoffs and will take a big hit on its valuation in its next round of funding.
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Source Fool.com
