Shares slid 4% to $14.28 on May 5 as Chrysalis Investments — a London-listed fund with concentrated Klarna exposure — disclosed a 17% collapse in its net asset value, largely driven by write-downs on its Klarna holdings. The catalyst: Klarna's own downgraded 2026 profit guidance, which has shattered the narrative that the Swedish fintech was on a clear path to sustainable earnings. The selloff stands out against a green tape, with the S&P 500 and Nasdaq both up over 0.5%.

  • A Big Investor Marked Down Klarna — and the Math Is Ugly. Chrysalis reported an unaudited NAV of 137.27 pence per share as of March 31, 2026, down 17% since December, driven mainly by Klarna's 56% share price fall.

Starling and Klarna together accounted for most of the 28.1p NAV drop. When an institutional holder publicly slashes its valuation, it signals to other investors that the stock's price tag may still be too high.

  • The Profit Warning That Triggered the Rout. Klarna's stock tumbled 26% in February after it warned that its gross merchandise volume growth will slow in Q2 due to tough comparisons.

Q4 adjusted operating profit came in nearly $20 million below Street estimates, and for Q1 2026 management guided to just $35 million maximum — well below the $67 million analysts expected. That gap between Wall Street hopes and management reality is what forced Chrysalis to write down its holdings.

  • $1 Billion in Revenue, Still No Profit. Klarna delivered its first billion-dollar revenue quarter in Q4, with revenue growing 38% to $1.082 billion. Yet Klarna's net loss for 2025 totaled $294 million , and its 2026 guidance targets an adjusted operating margin of just 6.9%. Revenue is growing, but the company is spending heavily on its banking push and lending expansion, delaying the profitability investors were pricing in at the $40 IPO price.

  • The Stock Is Down 75% From Its IPO — and Analysts Are Slashing Targets. KLAR's 52-week range spans from $12.06 to $57.20.

JP Morgan and UBS both cut their price targets to $20, down from $40 and $46 respectively.

The next earnings call is scheduled for May 14 , and will be critical. If Q1 numbers confirm the downgraded outlook, another leg lower could follow; any upside surprise could finally stabilize a stock trading at a fraction of its debut price.