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☆ IPO watchers are pinning hopes for recovery on a strong stock market and the AI boom
▼ + stars: | 2024-01-22 | by ( Bob Pisani | ) www.cnbc.com time to read: +8 min

Yet the main IPO ETF, the Renaissance Capital IPO ETF ( IPO ), has been for sale most of the month. "For the IPO market to open up, it would help not to have our IPO ETF down 9%," he said. Forge Global maintains a Private Market Index , a measure of 75 late-stage pre-IPO companies. "This tells you valuations are getting reset in the private market," Ng told me. Can AI save the IPO market?

Persons: Matt Kennedy, Homebuilder Smith Douglas, Don Short, Salomon, Wilson, Howe Ng, Ng, Del, Waystar, Kim Kardashian's, Short, Vincent Harrison Organizations: Renaissance Capital, Nasdaq, Amer Sports, Arc'teryx, Forge, SEC, Companies, Reuters, Auto, Turo, CNBC, Microsoft, Gaming, SpaceX, Forge Global Locations: Kazakhstan, IPOs, Pitchbook

☆ The buy now, pay later holiday debt hangover has arrived, as consumers wonder how they'll pay bills
▼ + stars: | 2024-01-21 | by ( Gabrielle Fonrouge | In Gabrielle-Fonrouge | ) www.cnbc.com time to read: +4 min

So she turned to a novel solution to get through the season: Buy now, pay later. It's tough to say how buy now, pay later fits into the country's overall debt picture. Klarna, PayPal and Affirm all declined to share buy now, pay later delinquency rates with CNBC. Affirm has said the short-term and high-velocity nature of its buy now, pay later service makes traditional credit metrics less relevant. Klarna said its global default rate for its overall business including buy now, pay later is less than 1%.

Persons: Kiki Andersen, Andersen, I've, I'm, It's, Ted Rossman, delinquencies, who've, Klarna Organizations: PayPal, CNBC, Adobe, Federal Reserve Locations: Los Angeles, U.S

☆ 3 reasons why a financial planner advises against using buy now, pay later, even though it's practically everywhere
▼ + stars: | 2024-01-18 | by ( Jennifer Streaks | Sarah Silbert | Senior Personal Finance Reporter | ) www.businessinsider.com time to read: +3 min

Buy now, pay later plans — installment loans that allow you to spread out payments over time — aren't exactly new, but they've seen explosive growth over the last several years. AdvertisementBut Chloe Moore , a certified financial planner based in Atlanta, Georgia, says that buy now, pay later is still debt and that most people should steer clear of it. Here are three reasons why she advises her clients against using buy now, pay later:1. Since buy now, pay later is so easy to use, some consumers have multiple installment plans that they are paying in a month. If you have multiple installments that you are paying with a buy now, pay later plan, you may be eliminating any breathing room in your budget.

Persons: BNPL, Chloe Moore, —, Moore Organizations: Consumer Financial Protection Bureau, PayPal, Finance Locations: Atlanta , Georgia

☆ Americans are racking up more 'phantom debt' — why that's a problem
▼ + stars: | 2024-01-07 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

Buy now, pay later is now one of the fastest-growing categories in consumer finance, according to a separate report by Wells Fargo. "It's hard to know how much of this debt is out there," said Ted Rossman, senior industry analyst at Bankrate. However, managing multiple buy now, pay later loans with different payment dates can also be a challenge, Quinlan added. "BNPL could lead to an increase in consumer debt, as consumers may be more likely to take on additional debt if they know they can spread out the payments," he said. watch nowWhile the typical terms might break a purchase into four equal interest-free payments, not all buy now, pay later loans work that way.

Persons: Wells, Tim Quinlan, Quinlan, Ted Rossman, Max Levchin, Rossman Organizations: Wells, Finance Locations: Wells Fargo

☆ Dud IPO market closes 2023 with a whimper for the second year in a row
▼ + stars: | 2023-12-08 | by ( Bob Pisani | ) www.cnbc.com time to read: +8 min

Another year, another lousy IPO market. The 2023 IPO market is closing with a whimper, not a bang. You'd think the IPO market would be bubbling, but it's dead quiet. Source: Renaissance Capital For a good part of the year, the excuse was interest rates were rising, the market was too volatile, and the after market performance of 2023 IPOs was terrible. The November rally is too little too late to save the IPO market Unfortunately, it all came a little too late to rescue 2023.

Persons: Birkenstock, You'd, Rivian, Doordash, IPOs, Matt Kennedy, Don Short, you've, haven't, confidentially, Waystar, Kim Kardashian's, Musk, Howe Ng, Ng, Kyle Stanford, Instacart, it's, James Ulan, Stanford, Pitchbook, Greg Martin Organizations: Renaissance, That's, IPOs, Hertz, Sotera, ARM, Renaissance Capital, Klarna, Microsoft, Forge Global, Bloomberg, SpaceX, Nvidia, Rainmaker Securities Locations: Pitchbook

☆ Klarna is freezing hiring and turning to AI tools such as ChatGPT to pick up the slack
▼ + stars: | 2023-12-04 | by ( Beatrice Nolan | ) www.businessinsider.com time to read: +2 min

Klarna CEO Sebastian Siemiatkowski says the company is in a partial hiring freeze. He told The Telegraph AI was "a threat to a lot of jobs" across the economy. As more AI productivity tools hit the market, some workers are concerned that widespread adoption of the tech could put their jobs at risk. AdvertisementSome CEOs have already bet that AI tools will boost worker productivity and lead to reduced headcount. Other companies including AT&T have even created their own AI tools to help employees with their work.

Persons: Sebastian Siemiatkowski, Siemiatkowski, —, We're, Klarna Organizations: Telegraph, Service, T's Locations: Swedish

☆ US Thanksgiving weekend sales hit record $38 bln on big discounts - report
▼ + stars: | 2023-11-28 | by ( Deborah Mary Sophia | ) www.reuters.com time to read: +2 min

Shoppers crowd a Walmart store ahead of the Thanksgiving holiday in Chicago, Illinois, U.S. November 27, 2019. Online consumer spending jumped 7.8% during Cyber Week, or the five days from Thanksgiving through Cyber Monday, according to data from Adobe Analytics, outstripping initial expectations for a 5.4% rise. But blockbuster deals rolled out from Thanksgiving Day through Cyber Monday helped spread the holiday cheer for bargain-hunters. Sales on Cyber Monday jumped a better-than-expected 9.6% to a record $12.4 billion, as shoppers clicked "buy" on Hot Wheels toys, PlayStation 5, smart watches and kitchen appliances. Reuters GraphicsAdobe said discounts peaked at 31% for electronics and at 27% for toys on Cyber Monday, which is typically the biggest online shopping day in the U.S.

Persons: Kamil Krzaczynski, Vivek Pandya, trouncing, Klarna, Deborah Sophia, Juby Babu, Pooja Desai Organizations: Walmart, REUTERS, Adobe Analytics, Deloitte, Adobe Digital, Graphics Adobe, Thomson Locations: Chicago , Illinois, U.S, Bengaluru

☆ Americans broke a record for spending on Black Friday, but it's just hiding a bigger problem for the economy
▼ + stars: | 2023-11-28 | by ( Cork Gaines | Noah Sheidlower | ) www.businessinsider.com time to read: +7 min

Many are delaying the cost as buy now, pay later programs are expected to have their biggest month ever. Many are paying via "buy now, pay later" platforms such as Klarna or Afterpay, which let shoppers pay in installments every week or month. Buy now, pay later also allows people to borrow less expensively as they get the pricing interest-free if paid off in time. Indeed, the Fed's "2022 Survey of Household Economics and Decisionmaking" found that 83% of respondents paid off their buy now, pay later programs on time. Compounding the problem is that people tend to spend more when using buy now, pay later programs, suggesting an overconfidence in what they can afford.

Persons: —, Salesforce, Beryl Tomay, Klarna, Mark Luschini, Janney Montgomery Scott, Maria Bartiromo, Luschini, Michael Landsberg, Landsberg Bennett, Kraig, Foreman Organizations: Black, Service, Adobe, Mastercard, CNBC, Business, Federal Reserve Bank of Atlanta, Household Economics, Social Science Research Network, Wealth Management Locations: Landsberg

☆ Americans broke a record for spending on Black Friday, but it is just hiding a bigger problem for the economy
▼ + stars: | 2023-11-28 | by ( Cork Gaines | Noah Sheidlower | ) www.businessinsider.com time to read: +7 min

☆ US Thanksgiving weekend sales hit record on big discounts, online boost
▼ + stars: | 2023-11-28 | by ( Deborah Mary Sophia | ) www.reuters.com time to read: +3 min

More than 200 million shoppers tapped into promotions both in-store and online during the Thanksgiving weekend, the National Retail Federation (NRF) said on Tuesday. That was a jump from the 196 million shoppers seen last year and trumped the trade association's estimates of 182 million. Online shoppers rose 3.1% to 134.2 million, making up for a slight dip in the number of customers who visited brick-and-mortar stores. The weekend saw about 121.4 million in-store shoppers, down from 122.7 million in 2022, according to the retail body. Adobe said discounts peaked at 31% for electronics and at 27% for toys on Cyber Monday, which is typically the biggest online shopping day in the U.S.

Persons: Kamil Krzaczynski, Matthew Shay, Vivek Pandya, trouncing, Klarna, Deborah Sophia, Juby Babu, Pooja Desai Organizations: Walmart, REUTERS, Adobe Analytics, Deloitte, National Retail Federation, Shoppers, Adobe Digital, Adobe, Thomson Locations: Chicago , Illinois, U.S, Bengaluru

NEW YORK, Nov 27 (Reuters) - A record amount of price-pinched holiday shoppers are expected to use buy now, pay later services for Cyber Monday to relieve stress on their wallets, according to Adobe Analytics. [1/2]A worker sorts products during Cyber Monday at the Amazon's fulfillment center in Robbinsville, New Jersey, U.S., November 27, 2023. The buy now, pay later firm saw a 29% increase in orders placed by U.S. shoppers on Black Friday, with some of the most popular items being personal electronics, televisions and kitchen appliances. It's become really, really, really popular," said Dan Dolev, an analyst at Mizuho Securities. Average basket sizes for buy now, pay later orders on Black Friday declined 32% compared to last year, according to a report from Quantum Metric, a sign that shoppers aren't making as big of purchases this year.

Persons: Klarna, BNPL, Mike Segar, It's, Dan Dolev, Arriana McLymore, Deborah Sophia, Juveria Tabassum, Aurora Ellis Organizations: Adobe Analytics, Shoppers, REUTERS, Mizuho Securities, Black, Thomson Locations: Robbinsville , New Jersey, U.S, New York City, Bengaluru

☆ E-commerce stocks rally after Black Friday shoppers spend record online
▼ + stars: | 2023-11-27 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com time to read: +3 min

Shoppers turned out in full force on Thanksgiving and over the Black Friday weekend, largely shunning physical stores for the comfort of clicking "buy online" from their couches. Black Friday online spending reached a record $9.8 billion in the U.S., up 7.5% from a year earlier, according to Adobe Analytics. Online sales on Cyber Weekend, the days between Black Friday and Cyber Monday, surged 7.7% to $10.3 billion. Cyber Monday sales are expected to reach up to $12.4 billion, making it the biggest U.S. online shopping day of the year, according to Adobe. A plastic rice washing bowl, listed as one of the top-selling Cyber Week items, is discounted 68% to $1.89 with free shipping.

Persons: Shoppers, Wayfair, Afterpay, Klarna, Sebastian Siemiatkowski, Siemiatkowski Organizations: Adobe Analytics, Black, Adobe, National Retail Federation, CNBC PRO Locations: U.S

☆ Credit products like 'buy now, pay later' may trend long term, says Klarna CEO
▼ + stars: | 2023-11-27 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCredit products like 'buy now, pay later' may trend long term, says Klarna CEOKlarna CEO Sebastian Siemiatkowski joins 'The Exchange' to discuss Black Friday shopping trends, the momentum of buy now, pay later, and more.

Persons: Sebastian Siemiatkowski

Overall, Adobe estimates one in five Americans plan to use buy now, pay later plans to purchase holiday gifts. Retailers have found that customers offered a buy now, pay later option are more likely to have bigger cart sizes or to convert from browsing to checking out. In its report, the Fed cites research that finds that customers spend 20% more when buy now, pay later is available. LexisNexis Risk Solutions provides many buy now, pay later lenders with alternative credit scores for assessing consumers seeking loans, including those who may not have a traditional credit score. In the past two years, Williams has used buy now, pay later plans at stores including Target, BoxLunch, EyeBuyDirect, and Skims.

Persons: Vivek Pandya, Demishia Alford, Alford, “, ”, she’ll, I’ll, I’m, ” Kevin King, Kevin, ” Alford, Jessica Sarceda, ” Sarceda, Sarceda, Allison Williams, Williams, —, ” Jinal Shah, Charles Schwab Organizations: —, Federal Reserve Bank of New, Adobe, Adobe Digital, ”, Retailers, Fed, Consumers, Walmart, LexisNexis, Solutions, Nike, Target, Zip, Associated Press, Charles, Charles Schwab Foundation, Inc, AP Locations: Federal Reserve Bank of New York, Greensboro , North Carolina, Santa Monica , California, Amelia , Ohio

☆ There's a wave of pre-IPO startups with pandemic-era price tags stuck in limbo right now
▼ + stars: | 2023-11-21 | by ( Tasmin Lockwood | ) www.businessinsider.com time to read: +4 min

There is a wave of pandemic-era startups stuck in limbo right now. The days of seeing 80% to 100% year-on-year revenue growth are gone, Hussein Kanji from early-stage fund Hoxton Ventures told Business Insider. Hoxton Ventures' Hussein Kanji said the days of companies racking up 100% year-on-year revenue growth are over. Investors tend to assess whether a company is IPO-ready on the rule of 40, which is revenue growth plus EBIT margin. Kanji added: "This is a lesson for a lot of people – if the IPO window opens up, take the company public."

Persons: they're, James Ulan, Klarna, Ulan, Karna's, Hussein Kanji, Morgan Stanley, Kanji, Kamil Mieczakowski, Fabian Heilemann, Graphcore Organizations: Business, Hoxton Ventures, Hoxton, Nvidia, Sequoia Locations: Ulan

☆ Klarna is 'pretty much ready' for an IPO, CEO says
▼ + stars: | 2023-11-12 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKlarna is 'pretty much ready' for an IPO, CEO saysSebastian Siemiatkowski, CEO of buy now, pay later firm Klarna, discusses the company's latest quarterly results.

Persons: Sebastian Siemiatkowski, Klarna

☆ Profitable Klarna poses IPO valuation conundrum
▼ + stars: | 2023-11-09 | by ( Karen Kwok | ) www.reuters.com time to read: +4 min

Last year, Siemiatkowski raised money at a $6.7 billion equity value, or 85% below its 2021 price tag of $45.6 billion. The implied Klarna valuation, before netting out the company’s cash or debt, would be roughly $14 billion. It’s hard to see Klarna getting close to those multiples, if it’s valued like a bank, since the Swedish company is nowhere near as profitable. For Siemiatkowski, then, the key to gaining an IPO valuation uplift will be to convince investors that Klarna is a lender but not a bank. Klarna raised $800 million at a $6.7 billion valuation in July 2022.

Persons: Sebastian Siemiatkowski, Klarna, That’s, Breakingviews, Siemiatkowski, Liam Proud, Streisand Neto Organizations: Reuters, Bank, Reuters Graphics Reuters, Revenue, Thomson Locations: U.S, Swedish, United Kingdom

☆ The IPO market has grown quiet again. Here's what is behind the shift in sentiment
▼ + stars: | 2023-11-09 | by ( Bob Pisani | ) www.cnbc.com time to read: +6 min

"That was a big wet blanket" for the IPO market, Greg Martin from Rainmaker Securities told me. Buy now, pay later firm Klarna, another oft-mentioned IPO candidate, told CNBC it has no immediate plans to go public. This is in stark contrast to most years, when big IPOs went public in November and December. A month earlier, in November 2020, Sotera Health raised $1.1 billion, and Miravai Life Sciences raised $1.6 billion. By contrast, a normal year should see at least $50 billion raised.

Persons: Don Short, Matt Kennedy, Greg Martin, IPOs, Klarna, Rivian, Hertz, Braze, Sweetgreen, Allbirds, Airbnb, Doordash, it's fizzling, Instacart, Kennedy, Homebuilder Smith Douglas, Morgan Stanley, there's Organizations: New York Stock Exchange, NYSE, Renaissance Capital, Rainmaker Securities, Wall Street Journal, CNBC, Bloomberg, Sciences, Renaissance, That's, IPOs, Healthcare Locations: Cava, U.S

☆ As more consumers struggle with credit card debt, here's what to know heading into the holiday season
▼ + stars: | 2023-11-08 | by ( Sharon Epperson | In Sharoneppersoncnbc | ) www.cnbc.com time to read: +3 min

That climbing "credit card delinquencies" rate may trend higher this holiday season. Knowing what the words credit card delinquencies mean is important because being delinquent or late with card payments can lower your credit score. Annual percentage rate (APR)If you're paying for holiday purchases with a credit card, you should know the annual percentage rate, or APR, on it before you buy. The average APR on a credit card is more than 21%, according to Bankrate, and nearly 30% for retail store credit cards. A LendingTree survey of 100 cards found some retail cards can have interest rates as high as 35%.

Persons: Matt Schulz, LendingTree Organizations: Federal Reserve Bank of New

☆ Klarna, Europe's $6.7 billion buy now, pay later firm, sets wheels in motion for eventual IPO
▼ + stars: | 2023-11-06 | by ( Ryan Browne | ) www.cnbc.com time to read: +3 min

Buy now, pay later firm Klarna has established a holding company in the U.K. that will sit at the top of its corporate structure, in a symbolic move that paves the path for an eventual listing. A Klarna spokesperson confirmed to CNBC that the Stockholm-based business, which lets shoppers defer payments over a period of instalments, has begun a legal entity restructuring to set up the holding company. "Klarna Holding will continue to be the regulated financial holding company under the direct supervision of the SFSA and we will continue to hold a Swedish banking license." It differs from these competitors in its flexible payment plans, known as buy now, pay later. WATCH: Klarna's buy now pay later losses are 30% below industry standard, says CEO Sebastian Siemiatkowski

Persons: Klarna, hasn't, Sebastian Siemiatkowski Organizations: CNBC, Heartland, PayPal, Sequoia Locations: Stockholm, Sequoia, Swedish, Silver, Britain, Sweden

☆ Amazon unveils buy now, pay later option from Affirm for small business owners
▼ + stars: | 2023-11-02 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

Amazon is unveiling its first buy now, pay later checkout option for the millions of small business owners who use its online store, CNBC learned exclusively. The tech giant confirmed Thursday that its partnership with Affirm is expanding to include Amazon Business, the e-commerce platform that caters to companies. "We constantly hear from small businesses that say they need payment solutions to manage their cash flow," Todd Heimes, director of Amazon Business Worldwide, said in an interview. "We offer the ability to use credit cards and to pay by invoice; this is another option available to small business customers to pay over time." Amazon Business was launched in 2015 after the company realized businesses were using its popular retail website for office supplies and bulk purchases.

Persons: That's, Todd Heimes Organizations: CNBC, Amazon, Black, Amazon Business, Business Locations: U.S

☆ UK watchdog intervenes again in 'buy-now-pay-later' as users rise
▼ + stars: | 2023-10-31 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

Signage is seen for the FCA (Financial Conduct Authority), the UK's financial regulatory body, at their head offices in London, Britain March 10, 2022. Companies that offer "buy-now-pay-later" (BNPL) unsecured loans are not regulated by the FCA, though it has used Britain's consumer rights law to make contracts fairer. The watchdog said its latest Financial Lives survey showed that 27% of UK adults or about 14 million people, have used BNPL at least once in the six months to January 2023, up from 17% in the 12 months to May 2022. BNPL is offered over a short period to shoppers who buy to clothes or other retail goods. Frequent users were more likely to be in financial difficulty and to have missed a payment of a bill or credit commitment, the FCA said.

Persons: Toby Melville, Clearpay, Sheldon Mills, Huw Jones, Tomasz Janowski Organizations: FCA, Financial, Authority, REUTERS, Bank of, PayPal, QVC, Thomson Locations: London, Britain, Bank of England

☆ Klarna's buy now pay later losses are 30% below industry standard, says CEO Sebastian Siemiatkowski
▼ + stars: | 2023-10-19 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKlarna's buy now pay later losses are 30% below industry standard, says CEO Sebastian SiemiatkowskiSebastian Siemiatkowski, co-founder and CEO of Klarna , joins 'The Exchange' to discuss the type of consumer buy now pay later plans attract, the debt collection process for missed BNPL payments, and how investors can differentiate between buy now pay later providers.

Persons: Sebastian Siemiatkowski Sebastian Siemiatkowski

Many start-up companies like Klarna are adding AI to their product portfolio to boost valuations as they wait for their turn to hit the public markets through an initial public offering. To prevent any privacy issues, Klarna's AI does not allow images of people's faces or bodies to appear, he said. Google's (GOOGL.O) Lens tool also has search features that allow the mixing of photos and text in searches. The shopping lens is available to consumers in the U.S., UK, Germany, Sweden, Denmark and Norway, Klarna said. Klarna, once Europe's most valuable startup, allows shoppers to buy online through its merchant partners and pay in installments using its "buy now, pay later" service.

Persons: David Sandström, Sandström, Klarna, Supantha Mukherjee, Jane Merriman Organizations: Google, Thomson Locations: STOCKHOLM, U.S, Germany, Sweden, Denmark, Norway, Stockholm

☆ Klarna takes aim at Google and Amazon with AI image recognition tool for shopping
▼ + stars: | 2023-10-11 | by ( Ryan Browne | ) www.cnbc.com time to read: +4 min

It's similar to how Google Lens directs users to suggestions based on items captured by their camera. The tool is trained on data from PriceRunner, a price comparison service Klarna acquired for close to $1 billion. PriceRunner competes with the likes of Amazon , Google's shopping comparison service Google Shopping, and French-founded firm Kelkoo. Klarna users will be able to point their phone at an item of clothing or gadget and find recommendations on similar products directly within the Klarna app. Still, regulators, not least the European Union, have become wary about the rapid advancement of generative AI technology, which generates new material in response to human inputs.

Persons: Rafael Henrique, David Sandstrom, Klarna Sandstrom, Klarna, Sandstrom Organizations: Getty, Google, CNBC, Microsoft, European Union Locations: Swedish, PriceRunner, French, Stockholm, Europe, China, Silicon Valley

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