Why Shares of StoneCo Fell 12.3% in July
Shares of digital payments and fintech company StoneCo (NASDAQ: STNE) fell 12.3% in the month of July. The company was finalizing its acquisition of fellow Brazilian digital financial services company Linx during the month and issued new shares to help partially finance the deal, but the decline in stock price can primarily be chalked up to macroeconomic factors.
Though the Delta variant of COVID-19 is quickly spreading in some parts of the world, total new cases in Brazil declined dramatically throughout the month of July. Latin America's largest economy is by no means out of the woods, but signs of recovery can be seen. Businesses are hiring again, and as economic activity rallies, inflation is also going up.
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Source Fool.com
