Why StoneCo Rallied This Week
Shares of Brazilian fintech company StoneCo (NASDAQ: STNE) rose this week, appreciating 18.8% through Thursday trading, according to data provided by S&P Global Market Intelligence.
There wasn't much company-specific news this week, although one Wall Street analyst did modestly raise their price target on shares. In addition, StoneCo is tightly connected with Brazil's overall economy, and stimulative spending intentions reported from Brazil's new liberal government this week could be helping lift shares.
Brazil's economy is heavily weighted toward commodities such as oil and iron ore, among others. Recently, some resilient growth numbers in the U.S. along with optimism over China's rapid reopening are bolstering the prices of several commodities that had fallen in the latter part of 2022. In general, better commodity prices mean good things for Brazil's economy.
Source Fool.com
