STNE - StoneCo: Don't Overthink - It's A Fintech Growth Stock (Rating Upgrade)
2024-04-10 08:30:00 ET
Summary
- StoneCo's fourth-quarter earnings report led to a steep plunge in its stock, but dip-buyers quickly returned and lifted buying sentiments.
- Investors have valid concerns about StoneCo's go-to-market strategy and its increased focus on the MSMB segment.
- The market has not recognized growth potential, leading to a valuation bifurcation and misunderstanding about its capabilities.
- Despite that, STNE has recovered well from its recent hammering.
- I argue why investors should capitalize on its resilience and buy more before the rest realize it. Read on.
StoneCo Investors Suffered A Hammering
StoneCo Ltd. ( STNE ) investors were stunned in March 2024 when the leading Brazilian fintech company released its fourth-quarter earnings report. This led to a steep plunge in STNE , notwithstanding its relatively attractive valuation. As a result, bearish sentiments threatened to force a steeper decline as STNE bears questioned its banking or fintech thesis. However, the fears have proved to be unfounded as buying sentiments have remained resilient, as dip-buyers returned aggressively and bought the initial selloff....
StoneCo: Don't Overthink - It's A Fintech Growth Stock (Rating Upgrade)