So…

Klarna just splashed onto the NYSE the other day, and if you haven't noticed, it's already turning heads. 

They priced it at $40 a share - above what many folks thought it'd go for - and the underwriters? Heavy hitters like Goldman Sachs, JP Morgan, and Morgan Stanley were steering the ship. 

That right there tells you Wall Street's got faith in this Swedish buy-now-pay-later powerhouse. 

Now, day one was electric. Shares opened trading at $52, which is a solid 30% pop from the IPO price, and honestly, traders were buzzing. 

It climbed as high as $57 in those first wild hours. Can you imagine what an old school trading floor would have looked like? Phones ringing off the hook, screens flickering like crazy… traders screaming buy and sell orders.

But then it cooled a bit, settling around $45.82 by close.

That's still up about 15% from its offering price.

The company raised $1.37 billion total… 

And it’s market cap landed at around $17.5 billion - peanuts compared to their $45.6 billion valuation back in 2021 when SoftBank threw in big bucks. Yes, the company was once valued at more than double what it is now.

Which means there could be tons of upside for investors if the company plays its game right. Which we think it will.

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But look, IPOs aren't always fireworks shows from the jump. Sometimes they do run right out of the gate and keep going. Sometimes.

However, most new issues need some time to breathe, to settle in.

See, markets and investors freak over every headline, good or bad. And some IPOs are heavily marketed to post IPO investors…

That’s why the first few days of an IPO can be absolutely wild. Plus, professional traders are very good at what they do. Sniping a few points here and there.

Now, for pre-IPO investors, many are sitting on a 90-180-day no-trade clause locks up. Meaning they, most of them anyhow, couldn’t sell into the initial hype.

Which, from our point of view, is a good thing; it prevents a massive dump right after launch.

But it’s the initial hype and settle that creates the sweet spot for us outsiders. Simply put, it’s often better to wait a few days before jumping into an IPO, especially a heavily marketed one… and especially if the company is solid and shows strong upside potential.

Now…

Demand's already nuts and from this writer’s point of view, Klarna's app is addictive. It allows consumers/lenders to split payments into interest-free chunks. Genius.

Of course, I decided to try it out myself to see what all the hype was about. And I’ve found the app is all it’s cracked up to be.

Additionally…

They've got deals with DoorDash, Walmart, you name it-global reach is insane, over 150 million users last I checked. 

And fintech is rebounding; tariffs or whatever drama earlier this year scared some folks off, but now the appetite's back. We're seeing patterns like Figma or Circle - they popped hard once the dust settled.

Now for Klarna in the short to mid-term?

We figure $60, maybe $70 easy in the next few months. We feel now that the IPO dust has settled, the stock could be undervalued at these levels, especially with their tech edge-AI chatbots handling customer service, cutting costs like nobody's business. 

If you're wanting to potentially make a big score, KLAR surely looks like winner to us. 

It's got the fundamentals that make IPOS great.