Investors should take a closer look at three stocks after they traded to the downside.
Klarna (KLAR), which offers Buy Now, Pay Later (BNPl) options for struggling consumers, plunged after it posted fourth-quarter results.
Klarna posted revenue of $1.08 billion in the fourth quarter. GMV of $38.7 billion is up by 32% Y/Y. The firm is forecasting tougher Q2 comparisons Y/Y. Its new partnerships will come in gradually, slower than investors expected.
Be wary of BNPL offerings, even though younger consumers will use them more often. Beaten-up stocks like Mastercard (MA) and Visa (V) are worth looking at instead.
Snowflake (SNOW) continued on a downtrend that began last November at a $265 share price. Wells Fargo (WFC) reported that a survey showed an increase in consumption trends for Snowflake. The bank reported that large customers increased their spending for Snowflake. It forecasts a 10% to 25% increase in spending for Snowflake.
The company will post quarterly results on February 25.
Dropbox (DBX) is struggling to compete in the file-sharing market. Microsoft (MSFT) customers have OneDrive, while Google (GOOG) users have Google Drive.
In Q4/2025, Dropbox posted an ARPU of $139.68 and a gross margin of 80.8%. For Q1/2026, revenue is up to $621 million. And for the year, gross margin is up to 82%. Those strong profitability figures failed to ease its shareholders.
DBX stock closed at $25.48, around 8% above its 52-week low.
