5 Best UK Stocks to Buy According to Hedge Funds

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1. Klarna Group plc (NYSE:KLAR)

On March 19, 2026, Klarna Group plc (NYSE:KLAR) announced that its Klarna Card has reached 5M active users globally, highlighting what the company described as “rapid adoption” as consumers shift toward more flexible payment options. Chief Marketing Officer David Sandstrom said the trend reflects how users are “looking for control and flexibility in a single card,” with the ability to choose between paying immediately or over time depending on the situation.

On March 17, 2026, Klarna Group plc (NYSE:KLAR) said it surpassed 1M merchants globally, with merchant count growing 47% over the past year, including 285,000 additions in 2025 and more than 115,000 in the fourth quarter alone. Chief Commercial Officer David Sykes said reaching this milestone reflects how Klarna is becoming more embedded in everyday spending, as consumers increasingly use its services across categories ranging from home-related purchases to recurring lifestyle expenses.

Earlier in March, BofA analyst Matthew O’Neill reinstated coverage on Klarna Group plc (NYSE:KLAR) with a Buy rating and a $21 price target.

Klarna Group plc (NYSE:KLAR) operates a digital banking and payments platform offering flexible payment solutions across global markets.

While we acknowledge the potential of KLAR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KLAR and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Must-Buy Real Estate Stocks to Invest In and 11 Best High Volume Penny Stocks to Buy Now.

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