SQUADRA Investments Reduces Stake in StoneCo
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy STNE?
Source: Fool
- Share Reduction Details: SQUADRA Investments sold 1,784,458 shares of StoneCo in Q4 2025, with an estimated transaction value of $29.84 million, indicating a diminishing confidence in the stock.
- Asset Allocation Shift: Following this sale, StoneCo now represents only 3.4% of SQUADRA's 13F reportable assets, down from 12.8% in the previous quarter, reflecting a significant reduction in portfolio concentration.
- Market Performance Insight: As of February 17, 2026, StoneCo shares were priced at $16.46, up 63% year-over-year, yet the stock faced a notable sell-off in the latter half of 2025, impacting investor sentiment.
- Investment Strategy Shift: Since Q4 2024, SQUADRA has steadily reduced its holdings in StoneCo by approximately 91%, suggesting a strategic pivot towards other fintech stocks like MercadoLibre that may offer better growth prospects.
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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 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.
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Block's Layoffs and Strong Outlook Capture Attention in Fintech
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- 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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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
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- New Investment: SQUADRA Investments - Gestao de Recursos Ltda. initiated a new position in MercadoLibre (NASDAQ:MELI) by acquiring 89,656 shares valued at $180.59 million, demonstrating strong confidence in the Latin American e-commerce and fintech platform.
- Asset Allocation Shift: At quarter-end, MercadoLibre represented 33.8% of the fund's reportable assets, with a position value of $180.59 million, reflecting both the impact of the share purchase and price appreciation, thereby enhancing the fund's portfolio diversification.
- Market Competition Challenges: Despite facing increased competition in the e-commerce sector and rising bad debts, MercadoLibre's strategy of using AI to predict borrower behavior indicates a proactive approach to risk management, potentially laying the groundwork for future profitability.
- Economic Environment Improvement: With economic improvements in Argentina and Venezuela, MercadoLibre may experience a turnaround in its e-commerce business, and although its stock sold off following Q4 earnings, SQUADRA's investment could yield significant returns in the long run.
See More
SQUADRA Investments Reduces Stake in StoneCo
- Share Reduction Details: SQUADRA Investments sold 1,784,458 shares of StoneCo in Q4 2025, with an estimated transaction value of $29.84 million, indicating a diminishing confidence in the stock.
- Asset Allocation Shift: Following this sale, StoneCo now represents only 3.4% of SQUADRA's 13F reportable assets, down from 12.8% in the previous quarter, reflecting a significant reduction in portfolio concentration.
- Market Performance Insight: As of February 17, 2026, StoneCo shares were priced at $16.46, up 63% year-over-year, yet the stock faced a notable sell-off in the latter half of 2025, impacting investor sentiment.
- Investment Strategy Shift: Since Q4 2024, SQUADRA has steadily reduced its holdings in StoneCo by approximately 91%, suggesting a strategic pivot towards other fintech stocks like MercadoLibre that may offer better growth prospects.
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
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
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
SQUADRA Investments Acquires Stake in MercadoLibre
- New Investment: SQUADRA Investments - Gestao de Recursos Ltda. initiated a new position in MercadoLibre (NASDAQ:MELI) by acquiring 89,656 shares valued at $180.59 million, demonstrating strong confidence in the Latin American e-commerce and fintech platform.
- Asset Allocation Shift: At quarter-end, MercadoLibre represented 33.8% of the fund's reportable assets, with a position value of $180.59 million, reflecting both the impact of the share purchase and price appreciation, thereby enhancing the fund's portfolio diversification.
- Market Competition Challenges: Despite facing increased competition in the e-commerce sector and rising bad debts, MercadoLibre's strategy of using AI to predict borrower behavior indicates a proactive approach to risk management, potentially laying the groundwork for future profitability.
- Economic Environment Improvement: With economic improvements in Argentina and Venezuela, MercadoLibre may experience a turnaround in its e-commerce business, and although its stock sold off following Q4 earnings, SQUADRA's investment could yield significant returns in the long run.
See More
SQUADRA Investments Reduces Stake in StoneCo
- Share Reduction Details: SQUADRA Investments sold 1,784,458 shares of StoneCo in Q4 2025, with an estimated transaction value of $29.84 million, indicating a diminishing confidence in the stock.
- Asset Allocation Shift: Following this sale, StoneCo now represents only 3.4% of SQUADRA's 13F reportable assets, down from 12.8% in the previous quarter, reflecting a significant reduction in portfolio concentration.
- Market Performance Insight: As of February 17, 2026, StoneCo shares were priced at $16.46, up 63% year-over-year, yet the stock faced a notable sell-off in the latter half of 2025, impacting investor sentiment.
- Investment Strategy Shift: Since Q4 2024, SQUADRA has steadily reduced its holdings in StoneCo by approximately 91%, suggesting a strategic pivot towards other fintech stocks like MercadoLibre that may offer better growth prospects.
See More
