Why Shares of StoneCo Crashed This Week
Shares of the Brazilian fintech company StoneCo (NASDAQ: STNE) plummeted more than 36% this week, as of market close Thursday, after StoneCo reported earnings results for the third quarter of 2021 that were not well received by the market.
StoneCo reported a net loss equivalent to $230 million on total revenue equivalent to roughly $270 million. On an adjusted basis, StoneCo reported the equivalent of a roughly $24 million profit, which missed analyst expectations for adjusted net income.
Although revenue grew significantly on a year-over-year basis, adjusted earnings suffered because the bank had to recognize a more than $241 million loss associated with its prior investment in Banco Inter. StoneCo took a nearly 5% stake in the company in the second quarter of the year, but since then Banco Inter's stock has not fared well, along with the Brazilian economy.
Source Fool.com
