2024-05-14 06:22:40 ET
Summary
- StoneCo's recent performance reveals a transition towards a banking model, indicating increased exposure to credit risk.
- It's essential to recognize the shift in StoneCo's fundamental nature and its implications for valuation multiples and growth prospects.
- Difficult to be bullish on this bank.
Investment Thesis
StoneCo ( STNE ) delivered Q1 2024 results that had many of the same elements as prior quarters. This is a beautiful story for investors who want exposure to Brazil's underbanked population. However, a beautiful story can trick some of the people for some of the time. However, after a while, investors like to check in on the fundamentals. And as we check in on StoneCo, the picture doesn't quite dazzle as strongly as it once did....
Read the full article on Seeking Alpha
For further details see:
StoneCo Q1 2024 Earnings: So, It Is A Bank