Why StoneCo Stock Popped 8% Higher Today
Shares of Brazilian fintech StoneCo (NASDAQ: STNE) rallied 8% today as of market close. The beleaguered digital-payments firm has been struggling from a combination of business missteps (e.g., the temporary freezing of its small-lending segment) and Brazil's economy dipping back into recession. Though today's rally is a welcome relief, the stock is down 80% in 2021 with just a day left until the new year.
Image source: Getty Images.
Ever since reporting strong revenue growth but a steep loss (due to a one-time write-down on investment value) for Q3 2021, there's been little in the way of good news to lure investors back. On the contrary, early in December it was reported that Brazil's GDP fell 0.1% year over year in the third quarter, stalling out the country's progress in recovering from the early effects of the pandemic. High inflation and a severe drought have taken their toll on the agriculture-heavy economy and cast shade at StoneCo.
Source Fool.com
