Why StoneCo Stock Plummeted 54% in November
Shares of Brazilian financial technology company StoneCo (NASDAQ: STNE) plummeted by 53.9% in November, according to data provided by S&P Global Market Intelligence. During the month, the company reported financial results for the third quarter, in which it grew its revenue and customer base substantially compared to last year. However, falling profitability (among other things) had investors running for the hills.
Let's start with the good news: In Q3, StoneCo's revenue grew 57% year over year to almost 1.5 billion Brazilian reais (around $264 million), and it ended the quarter with almost 1.4 million active payment clients -- more than double the number it had a year prior. However, revenue wasn't as high as it could have been, considering the company's take rate declined from 2.36% last year to 1.66% this year.
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Source Fool.com
