**Klarna and Affirm: The Best of Times, The Worst of Times, and Quarterly Performance**
*APAC Investment News*
Klarna is expected to post solid short-term performance as consumers increasingly turn to Buy Now Pay Later (BNPL) programs amid economic stress. Both Klarna (KLAR) and Affirm (AFRM) show strong user and merchant growth, but rising delinquencies and deteriorating savings rates pose significant medium- and long-term risks.
KLAR and AFRM currently carry hold ratings due to potential short-term upside; however, caution is warranted given mounting headwinds in consumer credit and the labor market. While delinquency rates remain below industry averages, worsening economic conditions could quickly erode fundamentals for both companies.
BNPL programs have become quite popular, especially among younger consumers. With living costs continuing to rise and many people living paycheck to paycheck, consumer credit usage is expected to increase. For the time being, BNPL providers appear well-positioned to benefit from this trend.
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### Observing Megatrends for Investment Insights
Markets rise and fall, booms come and go, and the world keeps ticking. Ultimately, observing megatrends — though difficult to spot and fully comprehend — can yield valuable insights into the advancement of human society. These insights, in turn, could pave the way for many useful investment opportunities.
As society and technologies evolve, companies and stakeholders will seize advantages. Identifying which companies will best capitalize on these opportunities is not easy. My interests lie especially in macrotrends, futurism, and emerging technologies.
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### The Importance of Fundamentals and Leadership
However, when it comes to investing, it is crucial to pay attention to fundamentals, the quality of leadership, product pipelines, and other pertinent details.
In recent years, my focus has been on marketing and business strategy, primarily for medium-sized companies and startups. I have worked in international development, including overseas for a foreign Prime Minister’s office, as well as non-profit organizations in the United States. Among other tasks, I have evaluated startups and emerging industries/technologies.
I have also worked as a technology and economic news journalist. Now, I am looking to tie all these experiences together.
While my personal interests will always keep megatrends and technological developments in mind, I firmly believe that fundamentals and technical analysis are vital to uncovering investment opportunities.
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### Analyst’s Disclosure
I/we have no stock, option, or similar derivative positions in any of the companies mentioned, and no plans to initiate such positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article.
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Past performance is no guarantee of future results. No recommendation or investment advice is being given as to whether any investment is suitable for a particular investor.
Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker, US investment adviser, or investment bank.
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