Klarna drops 22.81% after outlook cut as Fabrinet falls 19.38% in AI sell-off

Klarna shares fell 22.81% after the company cut its earnings outlook and announced leadership changes, a combination that heightened investor concern about its near-term trajectory. Fabrinet dropped 19.38% even though it reported strong quarterly results, with the move tied to a wider retreat in AI infrastructure stocks rather than company-specific operating weakness. The declines underscore how guidance changes and sector-wide positioning can outweigh otherwise solid results in equity markets.

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