"There's a huge rollout at Bank of America on the companies that we often talk about - Mastercard, Visa, Affirm, Klarna, Block. And I would point out that they like every single one. But his view is more selective. I would not go with Klarna. I think Klarna is not the buy now, pay later. I don't want it. If I take it, I'll get something from Affirm."
"Klarna's stock has fallen roughly 53% year-to-date and is down about 70% from its IPO price of $45.82 since its September 2025 debut, sitting at $13.69 today. The company posted a full-year 2025 net loss of $273M and while it guided for its first adjusted operating profit in Q1 2026 of $5-$35M, that's a razor-thin margin on a company still burning cash."
"Max Levchin, I think is a genius and Affirm is really at a great level. Affirm's fundamentals support the enthusiasm. The company posted Q2 FY2026 revenue of $1.123B, up nearly 30% year-over-year, with GMV of $13.8B, up 36%. Its Affirm Card alone saw GMV jump 159% to $2.2B. Analysts carry a consensus price target of $83.67 against a current price of $51.54."
Jim Cramer provides a selective ranking of payment and buy-now-pay-later companies following a Bank of America rollout covering Mastercard, Visa, Affirm, Klarna, and Block. While BofA likes all five, Cramer's assessment is more discriminating. He explicitly rejects Klarna, citing its poor stock performance (down 53% year-to-date and 70% from IPO price) and continued cash burn despite guidance for minimal adjusted operating profit. For BNPL exposure, Cramer favors Affirm, praising CEO Max Levchin and highlighting strong fundamentals including 30% revenue growth and 36% GMV growth. Affirm trades below analyst price targets with significant upside potential, though its high beta of 3.727 indicates volatility. For conservative investors, Cramer recommends Mastercard and Visa as safer payment infrastructure plays.
Read at 24/7 Wall St.
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