Jim Cramer isn't buying what Klarna Group PLC (KLAR) is selling. During CNBC's "Mad Money Lightning Round," the host advised viewers to ditch the Swedish buy-now-pay-later company and put their money into rival Affirm Holdings Inc (AFRM) instead.
The timing might seem odd considering Klarna just posted decent earnings. On November 18, the company reported third-quarter losses of 25 cents per share, beating analyst expectations of a 33-cent loss. Revenue came in at $903 million, topping the $881.898 million estimate. Looking forward, Klarna's fourth-quarter revenue guidance of $1.065 billion to $1.08 billion also edged past the $1.058 billion analyst consensus.
But apparently that wasn't enough to impress Cramer, who sees more upside in Affirm's story.
The host was considerably more enthusiastic about Newmont Corporation (NEM), calling the gold mining giant "real, real good." That confidence appears well-founded. UBS analyst Daniel Major maintained a Buy rating on Newmont this week and bumped the price target from $105.50 to $125.
Newmont's third-quarter results back up the bullish sentiment. The company posted revenue of $5.52 billion on October 23, crushing analyst estimates of $5.18 billion. Adjusted earnings of $1.71 per share also sailed past the $1.42 consensus.
Price Action:
- Klarna shares fell 4.6% to settle at $30.04 on Monday.
- Affirm shares declined 2.7% to close at $69.06.
- Newmont shares gained 1.2% to settle at $91.83 on Monday.
