Why StoneCo Stock Popped 27% This Week

Shares of StoneCo (NASDAQ: STNE) are up 26.5% this week as of 2:30 p.m. ET Thursday, according to data provided by S&P Global Market Intelligence. This occurred after the Brazilian fintech company announced strong quarterly results, a new share-repurchase authorization, and impressive forward guidance ahead of its Investor Day presentation.

StoneCo's steady march higher this week began on Monday, which marked the first trading session after the leading fintech stock released its third-quarter 2023 results after the market closed last Friday. The company's quarterly revenue increased 25.2% year over year to 3.14 billion Brazilian reals ($645.3 million U.S. dollars), well above estimates for 3.08 billion reals. On the bottom line, adjusted (non-GAAP) earnings more than tripled from the same year-ago period to 1.32 reals per share ($0.27 U.S.), also beating estimates for 1.13 reals per share.

Looking more closely at StoneCo's results, its number of micro, small, and medium-sized business (MSMB) active-payment clients increased 41.7% year over year to 3,279,100. Churn improved across all tiers of clients. MSMB total payment volume (TPV) also expanded 19.9% to 89.6 billion reals, lagging behind its growth in actual clients, given the relative outperformance of StoneCo's "Ton" solution (which focuses on the smaller micro-merchant client base).

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Source Fool.com