Why PagSeguro Stock Is Rocketing Higher Today
Shares of Brazilian fintech PagSeguro Digital (NYSE: PAGS) rose Wednesday by as much as 12.4% before settling into a 7% gain as of 2 p.m. ET.
One can chalk up PagSeguro's gains to better-than-expected earnings, which were released on Tuesday afternoon. There was also likely a low bar for the company to clear, as the stock had been beaten down severely over the past six months with Brazil's economy experiencing high inflation and a lack of growth. Despite that, PagSeguro posted solid revenue gains, albeit with muted profit growth as costs rose.
In the fourth quarter, PagSeguro saw exploding growth with total payments volume up 76.4% and revenue up 55%, beating analyst expectations. However, remember that since Brazil is seeing hyperinflation, and PagSeguro makes revenue as a percentage of every payment, its payments business will benefit from rising prices.
Source Fool.com
