Klarna shares plunged after the payments company trimmed its guidance, while Home Depot gained in the latest earnings-market reaction. The split tape puts the immediate risk on Klarna’s already loss-making profile and favors Home Depot’s more profitable operating base.
Klarna shares plunged after the payments company trimmed its guidance, while Home Depot gained in the latest earnings-market reaction.
The trimmed guidance compounds downside risk for KLAR’s loss-making profile, while HD’s earnings reaction is supported by a profitable operating base.
A quantified guidance update showing the trim is limited or already reflected in the price would weaken the downside case for KLAR.
CoverageSource: Yahoo Finance · Published here TUE, AUG 18 · 5:02 PM ET · 3 outlets in this record · latest listed: Yahoo Finance UK at 5:02 PM ETHow this is decided →
STOCK PHOTO · RDNE STOCK PROJECTThe Yahoo Finance live update reported a sharp decline in Klarna stock after the company reduced its guidance, while Home Depot shares moved higher. No specific revised guidance figures or forward outlook were provided in the supplied report.
The enrichment shows Klarna generated $3.5B of revenue in fiscal 2025, up 24.8% year over year, but reported a -7.8% net margin and dilutive EPS of $-0.79. Home Depot reported $164.7B of revenue in fiscal 2026, up 3.2%, alongside a 33.3% gross margin, an 8.6% net margin and dilutive EPS of $14.23.
The key follow-through is whether Klarna can restore confidence in its outlook despite its losses, while Home Depot’s gain will be tested against the durability of its slower-growth but profitable operating profile. The magnitude and scope of Klarna’s guidance trim remain the central missing details.
The immediate setup is weakest for KLAR because a guidance reduction lands against a -7.8% net margin and $-0.79 dilutive EPS, leaving less fundamental support for the shares after the plunge. HD offers the stronger comparative profile, with an 8.6% net margin and $14.23 dilutive EPS, but the supplied evidence does not establish a fresh standalone trade in the stock.
The read above, as written. kept as written
Tactical / 1-2 weeks. Follow to be told when one lands.
KLAR’s $3.5B of revenue and 24.8% year-over-year growth provide a concrete operating-growth hook that could support a rebound if the guidance reduction proves temporary.
The bear case is stronger: KLAR paired the guidance trim with a -7.8% net margin and $-0.79 dilutive EPS, leaving the revised outlook exposed to further estimate pressure.
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