StoneCo Ltd falls as it crosses below key technical indicator
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 06 2024
0mins
Should l Buy STNE?
Source: NASDAQ.COM
StoneCo Ltd experienced a significant price drop of 7.74%, crossing below its 5-day SMA during regular trading hours.
This decline is attributed to broad market weakness, as the Nasdaq-100 rose only 0.36% and the S&P 500 gained 0.08%, indicating a lack of strong support for the stock despite overall market gains. The movement suggests sector rotation as investors may be reallocating their portfolios away from StoneCo Ltd.
The implications of this price action could signal a shift in investor sentiment towards other sectors, potentially affecting future performance if the trend continues.
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Analyst Views on STNE
Wall Street analysts forecast STNE stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 16.800
Low
20.00
Averages
22.00
High
25.00
Current: 16.800
Low
20.00
Averages
22.00
High
25.00
About STNE
StoneCo Ltd. is a provider of financial technology and software solutions. The Company designed its cloud-based technology platform, namely the Stone Business Model, for its clients to connect, get paid, and grow their businesses. Its segments include financial services and software. In financial services, it offers payments, digital banking, and credit solutions, focused mainly on Micro, Small, and Medium Businesses (MSMBs). In software, it offers Point of Sale (POS) and Enterprise Resource Planning (ERP) solutions for different retail and service verticals, Customer Relationship Management (CRM), engagement tools, electronic commerce, and order management system solutions. It also provides digital product enhancements to help its merchants improve their consumers' experience, such as its split-payment processing, multi-payment processing, recurring payments for subscriptions, and one-click buy functionality. It provides its clients with store, life, and health insurance solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
StoneCo Reports Q4 2024 Earnings with Mixed Results
- Earnings Per Share: StoneCo reported an adjusted basic EPS of R$2.87 for Q4 2024, which, while in line with market expectations, failed to significantly boost stock prices, reflecting investor caution regarding future profitability.
- Revenue Growth: The company achieved revenue of R$3.73 billion in Q4, marking a 3.3% year-over-year increase, primarily driven by the expansion of its credit portfolio, indicating ongoing penetration in the credit market and an expanding customer base.
- Credit Portfolio Insights: The growth of StoneCo's credit portfolio evokes memories of 2021, yet the context and market conditions this time differ, potentially impacting future profitability models and risk management strategies.
- Market Reaction: Despite revenue growth, StoneCo's stock dipped due to 2025 adjusted gross profit falling below expectations, highlighting market concerns about the company's future profitability and a reassessment of its financial health.
See More
StoneCo Reports Lower-Than-Expected Q4 Earnings, Stock Drops
- Disappointing Earnings: StoneCo reported an adjusted gross profit of R$6.32 billion for 2025, reflecting a 13.5% year-over-year increase but falling short of the R$6.38 billion expected, resulting in a 3.41% drop in after-hours trading to $16.45.
- Q4 Profit Growth: The company achieved an adjusted gross profit of R$1.66 billion in Q4, up 9.1% year-over-year, indicating potential for growth driven by enhanced client monetization and increased contributions from credit products.
- Impairment Losses: In Q4, StoneCo recognized an impairment loss of R$157.8 million from the Linx divestment and incurred R$48.5 million in expenses related to civil lawsuit settlements, negatively impacting overall financial performance.
- Strategic Restructuring: Former CEO Pedro Zinner emphasized that the sale of Linx was a strategic move to focus on core areas such as payments, banking, and credit, which is expected to strengthen the company's competitive advantages and drive future growth.
See More
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StoneCo Set to Announce Q4 Earnings on March 2nd
- Earnings Announcement: StoneCo is set to release its Q4 earnings on March 2nd after market close, with a consensus EPS estimate of $0.51, reflecting a significant year-over-year decline of 77.4%, indicating severe profitability challenges for the company.
- Revenue Decline: The expected revenue for Q4 is $724.19 million, down 79.9% year-over-year, highlighting the company's struggles to achieve revenue growth in the current economic climate, which may impact investor confidence.
- Performance Forecast Changes: Over the past year, StoneCo has beaten EPS and revenue estimates 100% of the time; however, in the last three months, EPS estimates have seen two upward revisions and four downward revisions, while revenue estimates have not been revised upward, reflecting market concerns about future performance.
- CEO Transition Impact: Following the announcement of a CEO transition, StoneCo's stock has slid, raising investor concerns about the stability of the company's strategic direction and leadership, which could further pressure the stock price.
See More
Block's Layoffs and Strong Outlook Capture Attention in Fintech
- Layoff Impact: Block's announcement to reduce its workforce from 10,000 to 6,000 aims to enhance operational efficiency, although this drastic change raises concerns about the company's future development.
- Strong Outlook Guidance: The company issued robust performance guidance for 2026 and Q1 2023, reflecting confidence in its position within the payments industry, despite Q4 earnings merely matching Wall Street expectations.
- Market Concentration: In the payments sector, only three stocks—Sezzle, StoneCo, and NCR Alteos Corp.—hold A-rated momentum grades, indicating a high concentration of market momentum and reflecting the intense competition within the industry.
- Stock Performance: While Block's shares surged double digits following the layoff announcement, the stock is still down approximately 3% year-to-date, indicating a cautious market sentiment regarding its long-term growth potential.
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- Asset Allocation Shift: This investment accounts for 33.8% of the fund's reportable assets under management as of December 31, 2025, indicating SQUADRA's prioritization of MercadoLibre within its portfolio, which may influence its future investment strategies.
- Market Performance Insight: As of February 17, 2026, MercadoLibre's stock price stood at $1,975.51, down 5.9% over the past year; given the increased competition, SQUADRA's investment could yield returns in the long run, especially with potential economic improvements in Argentina and Venezuela.
- Risk Management Strategies: MercadoLibre is addressing rising bad loans by employing AI to predict borrower behavior, a strategy that may enhance its financial stability and support SQUADRA's investment.
See More
StoneCo Reports Q4 2024 Earnings with Mixed Results
- Earnings Per Share: StoneCo reported an adjusted basic EPS of R$2.87 for Q4 2024, which, while in line with market expectations, failed to significantly boost stock prices, reflecting investor caution regarding future profitability.
- Revenue Growth: The company achieved revenue of R$3.73 billion in Q4, marking a 3.3% year-over-year increase, primarily driven by the expansion of its credit portfolio, indicating ongoing penetration in the credit market and an expanding customer base.
- Credit Portfolio Insights: The growth of StoneCo's credit portfolio evokes memories of 2021, yet the context and market conditions this time differ, potentially impacting future profitability models and risk management strategies.
- Market Reaction: Despite revenue growth, StoneCo's stock dipped due to 2025 adjusted gross profit falling below expectations, highlighting market concerns about the company's future profitability and a reassessment of its financial health.
See More
StoneCo Reports Lower-Than-Expected Q4 Earnings, Stock Drops
- Disappointing Earnings: StoneCo reported an adjusted gross profit of R$6.32 billion for 2025, reflecting a 13.5% year-over-year increase but falling short of the R$6.38 billion expected, resulting in a 3.41% drop in after-hours trading to $16.45.
- Q4 Profit Growth: The company achieved an adjusted gross profit of R$1.66 billion in Q4, up 9.1% year-over-year, indicating potential for growth driven by enhanced client monetization and increased contributions from credit products.
- Impairment Losses: In Q4, StoneCo recognized an impairment loss of R$157.8 million from the Linx divestment and incurred R$48.5 million in expenses related to civil lawsuit settlements, negatively impacting overall financial performance.
- Strategic Restructuring: Former CEO Pedro Zinner emphasized that the sale of Linx was a strategic move to focus on core areas such as payments, banking, and credit, which is expected to strengthen the company's competitive advantages and drive future growth.
See More
Major Retailers Continue Earnings Season This Week
- AST SpaceMobile Earnings Outlook: AST SpaceMobile, Inc. (NASDAQ:ASTS) is set to report its Q4 results after Monday's close, with Wall Street anticipating a loss of 16 cents per share on revenue of $41.11 million, indicating competitive pressures in the market.
- CrowdStrike Growth Target: CrowdStrike Holdings, Inc. (NASDAQ:CRWD) will release its earnings after Tuesday's close, with investors keen to see if it can achieve at least 50% year-over-year growth in net new ARR, confirming its 20% growth trajectory and justifying its premium valuation.
- Broadcom Earnings Focus: Broadcom Inc. (NASDAQ:AVGO) is expected to report its Q1 results on Wednesday afternoon, with analysts forecasting EPS of $2.02 on revenue of $19.14 billion, while investors will be watching if AI semiconductor revenue doubles to $8.2 billion.
- JD.com Earnings Preview: JD.com, Inc. (NASDAQ:JD) is expected to release its results before Thursday's open, with Wall Street predicting a loss of 3 cents per share and revenue of $50.22 billion, reflecting the challenges and opportunities in the Chinese e-commerce market.
See More
StoneCo Set to Announce Q4 Earnings on March 2nd
- Earnings Announcement: StoneCo is set to release its Q4 earnings on March 2nd after market close, with a consensus EPS estimate of $0.51, reflecting a significant year-over-year decline of 77.4%, indicating severe profitability challenges for the company.
- Revenue Decline: The expected revenue for Q4 is $724.19 million, down 79.9% year-over-year, highlighting the company's struggles to achieve revenue growth in the current economic climate, which may impact investor confidence.
- Performance Forecast Changes: Over the past year, StoneCo has beaten EPS and revenue estimates 100% of the time; however, in the last three months, EPS estimates have seen two upward revisions and four downward revisions, while revenue estimates have not been revised upward, reflecting market concerns about future performance.
- CEO Transition Impact: Following the announcement of a CEO transition, StoneCo's stock has slid, raising investor concerns about the stability of the company's strategic direction and leadership, which could further pressure the stock price.
See More
Block's Layoffs and Strong Outlook Capture Attention in Fintech
- Layoff Impact: Block's announcement to reduce its workforce from 10,000 to 6,000 aims to enhance operational efficiency, although this drastic change raises concerns about the company's future development.
- Strong Outlook Guidance: The company issued robust performance guidance for 2026 and Q1 2023, reflecting confidence in its position within the payments industry, despite Q4 earnings merely matching Wall Street expectations.
- Market Concentration: In the payments sector, only three stocks—Sezzle, StoneCo, and NCR Alteos Corp.—hold A-rated momentum grades, indicating a high concentration of market momentum and reflecting the intense competition within the industry.
- Stock Performance: While Block's shares surged double digits following the layoff announcement, the stock is still down approximately 3% year-to-date, indicating a cautious market sentiment regarding its long-term growth potential.
See More
SQUADRA Investments Establishes New Position in MercadoLibre
- New Position Established: According to a February 17, 2026 SEC filing, SQUADRA Investments - Gestao de Recursos Ltda. initiated a new stake in MercadoLibre by acquiring 89,656 shares, with an estimated transaction value of $180.59 million, reflecting the fund's confidence in the Latin American e-commerce market.
- Asset Allocation Shift: This investment accounts for 33.8% of the fund's reportable assets under management as of December 31, 2025, indicating SQUADRA's prioritization of MercadoLibre within its portfolio, which may influence its future investment strategies.
- Market Performance Insight: As of February 17, 2026, MercadoLibre's stock price stood at $1,975.51, down 5.9% over the past year; given the increased competition, SQUADRA's investment could yield returns in the long run, especially with potential economic improvements in Argentina and Venezuela.
- Risk Management Strategies: MercadoLibre is addressing rising bad loans by employing AI to predict borrower behavior, a strategy that may enhance its financial stability and support SQUADRA's investment.
See More
