Tech Stocks Sow Doubts as Klarna Shares Dip Below IPO Price

New York, NY — Klarna’s shares fell below their initial public offering price for the first time on Friday, Sept. 26, in the midst of a broader decline in technology stock values. The company’s stock dipped to $38.31, below the $40 IPO price set during its debut on Sept. 10, according to a report by Bloomberg.

This recent drop in share value coincides with a slowdown in technology stocks following a record-setting rally. Bloomberg attributed the downturn to economic data indicating that the Federal Reserve may not pursue further interest rate cuts. Several FinTech companies also experienced a downward trend on Friday.

“FinTech stocks, including Klarna, are sensitive to macroeconomic factors like interest rates and regulatory developments,” said a Bloomberg Intelligence analyst. “Although the Fed started cutting rates in 2025, any hint of slower-than-expected cuts or rising yields can pressure valuations and sentiment as higher yields could increase their borrowing costs.”

The Financial Technology sector overall saw declines, with stocks like {insert company names} dropping significantly. Reports by PYMNTS indicated that the sector lost 3.5% this past week, reversing some of its recent gains. Klarna’s shares were down by 11.2%, while other companies saw losses of 15.7%, 1.9%, 5.9%, and 7.8% respectively.

Cryptocurrency markets also struggled, reporting a drastic loss of more than $140 million since the beginning of the week. Ether, the second most popular cryptocurrency, decreased by 4.7% to its lowest point in nearly seven weeks, and Bitcoin fell by 1.7%.

A crypto analyst noted that ether’s recent decline is linked to diminished institutional interest and technical pressures. When Klarna launched on Sept. 10, its shares started strong at around $52, peaked near $57, and settled at approximately $45.82, a 15% gain over its IPO price.

In a bullish indicator, Klarna reported on Thursday that over 1 million Americans had registered for its payment card in the 11 weeks since its July 4 launch, providing users with flexible payment options.