Klarna is putting the fintech start-up's IPO plans on pause as tech stocks slump in response to President Donald Trump's tariff plans, according to a report from the Wall Street Journal. The delay offers another troubling signal for hopes of an IPO market revival, after AI cloud provider CoreWeave downsized its offering last week.
The buy-now-pay-later company, which competes with Affirm, postponed a plan to start marketing its shares for the offering Monday, according to the report. The Sweden-based Klarna had filed earlier this year to list its shares on the New York Stock Exchange, targeting a reported $15 billion valuation.
Tech stocks have been hit hard as Trump's tariff plans rattled investors. Shares of Klarna rival Affirm are down more than 40% this year, including a 26% slide this week.
Klarna IPO: What Does It Mean For Overall Market?
So-called tech unicorns — startups with a private valuation of over $1 billion — have been slow to go public since the 2021 bull market faded. There was hope among investors, however, that 2025 would see more major debuts.
But the much-hyped CoreWeave IPO saw the company sell fewer shares at a lower price than the AI company initially targeted last week. CoreWeave stock rallied earlier this week before falling on tariff fears Thursday and Friday. Overall, the stock appears set to close its first week of trading up more than 20%.
Klarna was the next big name expected to test the market. Now the timing is uncertain. Further, the Wall Street Journal reported Thursday that ticketing website StubHub is also delaying its plans amid market turmoil.
