StoneCo remains a Buy, supported by robust growth, strong results, and a focused strategy after software asset divestments. STNE's divestitures generated significant capital, enabling a sharper focus on financial services and positioning the company for long-term growth in Brazil's market and beyond. Despite macroeconomic headwinds and high interest rates, STNE continues to deliver impressive e...
StoneCo delivered a strong Q2, with robust EPS growth (+44.7% YoY), expanded TPV, and grew its active customer base by 17.2%, confirming solid operational momentum. Short-term margin expansion was supported by repricing initiatives and better use of client deposits, though COGS growth and high interest rates warrant monitoring. Non-core assets, including Linx and SimplesVet, were sold, boosting...
StoneCo is undervalued despite robust earnings, strong cash flow, and double-digit growth, trading at just 9x forward P/E and 1.6x P/S. The company's dominant SME franchise, strategic SaaS divestiture, and focus on efficiency position it for sustainable profitability and improved valuation. Aggressive share buybacks and disciplined capital allocation demonstrate management's commitment to share...
Brazilian technology company TOTVS announced on Tuesday that it signed a legal instrument to acquire 100% of the shares of Linx Participações, owned by StoneCo, for an estimated R$3.05 billion (or US$561 million). According to local media outlet InfoMoney, the transaction pertains to a portion of Linx's software businesses, which specialise in retail solutions.
Brazilian software company Totvs has agreed to buy StoneCo's Linx unit in a deal worth 3.05 billion reais ($547.90 million), it said on Tuesday, adding that it expects the move to strengthen its position in the retail segment.
StoneCo is no longer the broken company the market remembers. I see a clear path to a $30 valuation. With profitability firmly re-established, StoneCo is well-positioned to make the most of favorable macro trends in Brazil. The market is waking up, with the stock up 70% YTD. I believe the window to capture the bulk of this re-rating is closing over the next 6-12 months.
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