Jim Cramer Discusses Klarna Group plc (KLAR) & AI-Related Job Cuts

We recently published 13 Latest Stocks on Jim Cramer’s Radar. Klarna Group plc (NYSE:KLAR) is one of the stocks Jim Cramer recently discussed.

Klarna Group plc (NYSE:KLAR)’s shares were listed for public offering on Wednesday. It is a Swedish financial technology firm that enables customers to select their preferred payment methods and decide whether they want to pay later. On the day the shares listed for trading, Klarna Group plc (NYSE:KLAR)’s CEO outlined to CNBC that the firm had 700,000 card customers in the US and a wait list of 5 million. During the two days of trading since they were listed, the stock has lost 6.7%. In these remarks, while Cramer didn’t discuss Klarna Group plc (NYSE:KLAR)’s business, he did comment on what he had heard about the impact of AI on its business:

“[On CEO saying that the firm had reduced headcount by 3,400 following AI] Wow. Yeah, I heard that. You know Klarna, you’ve got two groups of people that are I’d say in a worrisome position. Third and fourth year people, who had just learned how to code. You don’t kind of need as many of them. But then people coming out of school having to do a pivot. Think about what they want to do. I keep hearing a lot of people want to go to graduate school. But it’s because they, the companies don’t know if they should be hiring.

“[On what they said about the IPO market yesterday] Well I thought they were, look, it’s open, it’s open. . .we’re not used to it. I don’t think we’re used to the buoyant nature of what it was like, it’s been like this since 2014 when we had these companies. It has been 11 years. There was a 2020 period but that was tainted by SPACs. It was good for a while.”

While we acknowledge the risk and potential of KLAR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KLAR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.