Ark Invest CEO Cathie Wood, known for investing in high growth companies that are "innovative," is betting on Klarna Group‘s (NYSE:KLAR) future growth in the buy now, pay later sector.
Daily email notifications from Ark Invest show the company bought shares of Klarna in its first two days of being a public company.
The IPO was one of the biggest public offerings in 2025, raising over $1 billion with the company valued at more than $15 billion. Shares, priced initially at $41, opened at $52 and hit a high of $57.20 and closed at $45.82 in its first day of trading, ahead of an expected range of $35 to $37.
The shares were added to the Ark Fintech Innovation ETF (BATS:ARKF) with the following purchases made:
- Wednesday: 200,000 shares
- Thursday: 286,026 shares
At the time of writing on Friday, the Ark Fintech Innovation ETF has 491,856 Klarna shares, worth $21 million. The higher amount of shares than the two purchases could indicate more buying on Friday. The stock is currently the 29th largest weighting in the ETF at 1.11% of assets.
High Expectations for Klarna
Klarna enters the public markets with a rush of technology-related companies going public, with demand swelling and many IPOs oversubscribed.
The company went public as demand for buy now, pay later is also soaring. Klarna has key partnerships with companies, including DoorDash and Walmart, that could help shape its future.
In the most recently reported fiscal quarter, Klarna's revenue was up 20.6% year-over-year to $823 million. The company's net loss soared from a loss of $7 million in the quarter to a loss of $52 million in the quarter.
Klarna Stock Falls
Klarna shares are down 3.1% to $41.64 on Friday, nearing their IPO price. The stock has traded between $40.25 and $57.20 since going public.
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