Jim Cramer Suggests Selling Klarna and Investing in This Stock

Jim Cramer’s Advice on Stock Investments

On a recent broadcast of CNBC's 'Mad Money Lightning Round,' Jim Cramer provided his analysis regarding Klarna Group PLC and Affirm Holdings Inc. His recommendation to sell Klarna and focus on investing in Affirm presents an intriguing strategy for investors looking to navigate the evolving financial landscape.

Klarna’s Financial Performance

Klarna has recently made headlines following its announcement of third-quarter losses of 25 cents per share. This outcome was somewhat favorable as it outperformed market expectations of a more significant loss of 33 cents. In addition to its losses, Klarna reported quarterly revenue of $903 million, exceeding market forecasts of $881.9 million. Such a performance may hint at the company’s ongoing efforts to stabilize its financial standing amidst a competitive market.

Looking Towards the Future

In its recent guidance, Klarna projects revenue for the fourth quarter to be between $1.065 billion and $1.08 billion. This outlook appears to be promising, as it slightly surpasses the previous market estimate of $1.058 billion. These positive indicators might suggest that despite the challenges, Klarna is working towards turning its fortunes around.

Insights on Affirm Holdings

Cramer emphasized the potential value in Affirm Holdings Inc, which is positioned as a competitor to Klarna. Investors might find Affirm appealing due to its recent performance and Cramer's strong endorsement. Affirm has been gaining traction in the market, capitalizing on the growing trend of Buy Now, Pay Later (BNPL) services.

Newmont Corporation as an Investment Opportunity

Beyond simply switching focus between Klarna and Affirm, Cramer also spoke about the remarkable performance of Newmont Corporation. Highlighting its strong position in the mining sector, Cramer noted that Newmont is doing “real, real good.” Additionally, UBS analyst Daniel Major reaffirmed this sentiment, maintaining a Buy rating and adjusting the price target from $105.5 to $125.

Recent Earnings from Newmont

On October 23, Newmont posted third-quarter revenue of $5.52 billion, surpassing the anticipated figure of $5.18 billion. This earnings report also included adjusted earnings of $1.71 per share, outpacing analyst estimates of $1.42 per share, showcasing the company’s solid operational performance amidst market fluctuations.

Stock Price Movements on Recent Trades

Investor reactions to these insights have been telling. Klarna stocks saw a decrease of 4.6% to settle at $30.04, while Affirm shares declined by 2.7%, closing at $69.06. Conversely, Newmont's stock experienced a positive uptick, gaining 1.2% and settling at $91.83, a testament to its investor confidence and market resilience.

Frequently Asked Questions

Why does Jim Cramer recommend selling Klarna?

Cramer suggests selling Klarna due to its recent financial losses, although it has shown some improvement compared to market forecasts.

What are the projections for Klarna’s fourth-quarter revenue?

Klarna projects its fourth-quarter revenue to be between $1.065 billion and $1.08 billion, exceeding the market's initial estimates.

What potential does Affirm Holdings have according to Cramer?

Cramer believes Affirm Holdings is well-positioned within the BNPL market, making it a strong investment choice compared to competitors.

How did Newmont Corporation perform in its latest earnings report?

Newmont reported impressive earnings with revenue of $5.52 billion and adjusted earnings of $1.71 per share, exceeding expectations.

What has been the market reaction to these stock recommendations?

Investments in Klarna dropped while Newmont's shares rose, indicating varying levels of investor confidence based on Cramer’s recommendations.

About The Author

Even at just 28 years old, Lucas Young has made a name for himself as a writer and financial expert. Lucas is a gifted communicator of difficult financial ideas and has written a number of well-received books and articles that appeal to both new and experienced investors. The financial world has come to rely on his perceptive analysis and useful counsel. Many people have been enabled to make wise investment decisions by Lucas's commitment to financial literacy and his ability to demystify the complexities of the market. Lucas is still dedicated to advising and teaching people on their financial journeys as he shares his knowledge.

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