KLARNA'S STOCK CRASH SHOWS THE PRICE OF BEING A SMALL FISH IN A BIG POND

Summary from the TLDR Fintech newsletter

Klarna's shares plunged nearly 25% after it warned that weak consumer spending in Germany would weigh on full-year revenue, despite ample signs of deteriorating demand in Europe's largest economy. Klarna's US listing may be working against it, since the company is relatively small and underfollowed in American markets, whereas a European listing could have brought more index inclusion, passive flows, and investor familiarity with its core markets.