Klarna stock plunges 20% on trimmed guidance as German retail sales slow

Klarna shares plunged 20% in premarket trading after the company issued full year revenue and gross merchandise value guidance that missed expectations. Despite reporting a profit beat for the second consecutive quarter, the payments company cited foreign exchange pressures and slowing retail sales volumes in Germany. This stock drop highlights vulnerabilities within the fintech sector and challenges the resilience of the BNPL model amid current economic shifts and a broader retail slowdown affecting the company's growth.