Why StoneCo Stock Dropped Today
Shares of StoneCo (NASDAQ: STNE) dropped by as much as 5% despite getting a bullish vote of confidence from Wall Street. The broader market is aggressively selling off as retail traders drive significant volatility in stocks with high short interest, which is reverberating throughout the market and creating turmoil. As of 3 p.m. EST, StoneCo shares were down 3%.
Citi resumed coverage of StoneCo this morning, giving the Brazilian fintech company a buy rating while increasing its price target from $58 to $86, approximately 16% upside from yesterday's close. Analyst Jorg Friedemann acknowledges that there isn't a lot of near-term insight into the potential benefits of Stone's acquisition of Linx (NYSE: LINX), but the deal could still potentially help boost revenue growth and margin expansion.
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Source Fool.com
