Key Takeaways Market Indexes Remained "Risk Off" on Myriad ConcernsAmazon Beats Earnings, but Spooked Investors on Huge CapExOther Key Reports This Afternoon Include Roblox and AffirmThursday, February 5th, 2026Market indexes scuba-dived today: went below the surface and stayed there, across the board. Bitcoin, metals and apparently equities are all being painted with the same quivering-hand brush. The Dow shed -592 points, -1.20%, the S&P 500 was -84, -1.23%, the Nasdaq -363, -1.59% and the small-cap Russe ...

Group 1 - KLA Corporation (NASDAQ:KLAC) is a semiconductor equipment company that experienced a significant stock rally, increasing by 93% in the previous year, driven by high demand for memory chips in data centers [1] - The company develops tools and software that assist chipmakers in inspecting, measuring, and controlling semiconductor manufacturing processes to enhance quality and yields [2] - Analysts recognize the potential of KLA Corporation as an investment, although some believe that certain AI stocks may offer greater upside potential with less downside risk [2]

Core Insights - Affirm Holdings, Inc. reported strong fiscal first-quarter results, exceeding analyst expectations and boosting investor confidence in its growth potential [1][2] - The company achieved earnings of $0.23 per share, significantly higher than the consensus estimate of $0.11, with revenue reaching $933.33 million, surpassing the forecast of $883.14 million and increasing from $698.47 million year-over-year [2] - Affirm's CEO attributed the record performance to consistent execution and operational strength, noting the highest-ever gross merchandise value (GMV) achieved during the quarter [3] Financial Performance - Earnings per share for the first quarter were $0.23, more than double the expected $0.11 [2] - Revenue for the quarter was $933.33 million, exceeding the forecast of $883.14 million and up from $698.47 million in the same quarter last year [2] - Affirm's gross merchandise value (GMV) reached a record high despite fewer shopping holidays [3] Analyst Ratings and Price Targets - JPMorgan analyst Reginald L. Smith maintained an Overweight rating with a price target of $94, anticipating further GMV and revenue growth [3] - BofA Securities analyst Jason Kupferberg kept a Buy rating and raised the price target from $94 to $98 following the earnings release [4] - Morgan Stanley's James Faucette maintained an Equal-Weight rating but lowered his target from $90 to $83, indicating differing views on valuation post-earnings [4] Strategic Partnerships - Affirm announced an expanded financing partnership with Amazon, entering into a new five-year agreement to offer installment loans to eligible Amazon shoppers [5] - The agreement will be effective from February 1, 2026, and includes automatic annual renewals unless terminated [5] Stock Performance - Following the earnings report, Affirm's shares rose by 9.15%, trading at $71.90 [6]

Group 1: Company News - Klarna debuted on the New York Stock Exchange, raising $1.37 billion, but experts express concerns about users potentially taking on excessive loans and payment burdens [6] - Oracle cofounder Larry Ellison has become the world's richest person with a net worth of approximately $393 billion, boosted by a significant increase in Oracle's stock value following positive earnings reports [7] Group 2: Market Updates - S&P 500 futures increased by 0.13%, while other major indices such as STOXX Europe 600 and Japan's Nikkei 225 saw gains of 0.35% and 1.22% respectively [11] - Bitcoin's value rose to $114,156.00, indicating a positive trend in cryptocurrency markets [11] Group 3: Industry Trends - The launch of Amazon-owned Zoox's robotaxi services in Las Vegas marks a significant step in the autonomous vehicle industry, with initial rides being offered free of charge [10]

Core Viewpoint - Klarna, a Swedish buy-now, pay-later fintech firm, successfully began trading on the New York Stock Exchange, reflecting strong investor demand and a significant valuation increase from its initial public offering price. Company Overview - Klarna started trading at $52, a 30% increase from its IPO price of $40, which was raised from an initial target of $35 to $37 due to high demand, resulting in a valuation of $15.1 billion [1] - The company raised $1.37 billion through the offering of 34.3 million shares, with $200 million allocated to the company and $1.17 billion to existing shareholders [1] - Klarna's market capitalization reached $19.6 billion at the trading price of $52 [1] - Founded in Stockholm in 2005, Klarna expanded into the U.S. market in 2019 and is recognized for its buy-now, pay-later payment model, allowing customers to split purchases into four payments over six weeks or opt for longer-term financing [4] Industry Context - Klarna is the first of three notable fintech firms going public this week, alongside Figure and Gemini, indicating a resurgence of investor interest in IPOs [2] - The company faced challenges in profitability since 2019, with rising competition from firms like Affirm, which has seen a stock increase of nearly 44% this year and reported profits for the first time last quarter [5] - Klarna reported losses of $52 million on revenue of $823 million for the quarter ending June 30, compared to a $7 million loss on $682 million in revenue during the same period in 2024 [5] - The IPO was underwritten by major financial institutions including Goldman Sachs, JPMorgan, and Morgan Stanley [6]

Industry Trend - A buy-now, pay-later app is revitalizing Venezuela's stock exchange [1] Company Strategy - The app aims to alleviate the financing burden of its merchant partners [1] Business Focus - The app facilitates purchases ranging from clothing to tires in Venezuela [1]

Core Insights - Sezzle's stock surged 51% following strong first-quarter results and an upward revision of guidance [1] - The company reported a 64.1% increase in gross merchandise volume (GMV) to $808.7 million, with customer purchase frequency rising from 4.5 to 6.1 times [3] - Revenue soared 123.3% to $104.9 million, significantly exceeding estimates of $64.8 million [3] - Operating income increased by 260.6% to $49.9 million, resulting in an operating margin of 47.6% [4] - GAAP earnings per share rose from $0.22 to $1.00, surpassing the consensus estimate of $0.32 [4] Company Performance - Sezzle had 658,000 users in the quarter, indicating strong user engagement [4] - CEO Charlie Youakim attributed the success to investments in innovation and consumer experience, leading to increased engagement and performance [5] - The company raised its 2025 net income guidance by nearly 50% to $120 million due to stronger consumer activity and repayment trends [5] Future Outlook - Management increased total revenue growth guidance for the year to 60%-65%, up from a previous estimate of 25%-30% [6] - Expected earnings per share were raised to $3.25 from $2.21 [6] - Sezzle is positioned as a competitive player in the BNPL market, offering unique features such as user control over credit bureau reporting [5] - The stock is considered reasonably valued with a price-to-earnings ratio of 25, suggesting potential for further growth [7]