Why Block, Sea Limited, and StoneCo Skyrocketed Today
Shares of Block (NYSE: SQ), Sea Limited (NYSE: SE), and StoneCo (NASDAQ: STNE) were soaring on Wednesday, up 11.4%, 10%, and 9.7%, respectively, as of this writing.
While each of these companies is different from the others, all are levered to economic activity, with fintech as a significant part of their offerings. Block -- formerly known as Square -- offers a payment processing platform for small merchants, as well as a consumer fintech ecosystem with its Cash App. Though Sea's largest businesses today are its Garena mobile games platform and its Shopee e-commerce site, its SeaMoney fintech platform is its fastest-growing segment. And StoneCo is a Brazilian payment processor that has been expanding into micro-loans, insurance, and other financial services for its merchant and consumer clients.
Wednesday saw oil prices drop from their recent highs, while long-term interest rates rose, which is typically good for economically sensitive stocks like financials. These three are also high-growth stocks with minimal or no current profits, so each had been battered this year amid concerns over higher interest rates.
Source Fool.com
