Why StoneCo Lost 20% in the First Half of 2021
Shares of Brazilian fintech company StoneCo (NASDAQ: STNE) fell 20% in the first six months of 2021 according to data provided by S&P Global Market Intelligence. Fourth-quarter earnings reported in March and first-quarter earnings reported in June both came in below analyst expectations, and shares are trading at almost 120 times trailing-12-month earnings. It's fallen even more since July 1 and is down 25% year to date as of this writing, as seen in this chart.
StoneCo provides fintech solutions for Brazilian businesses as well as digital payment options, like Square. That includes point of sale devices, digital bank accounts, credit card processing, and other digital features. That's putting pressure on the company during the pandemic when many businesses in Brazil are still closed, but its digital focus remained a growth driver.
Source Fool.com