StoneCo Ltd. Stock Performance Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy STNE?
Source: NASDAQ.COM
- Stock Volatility: StoneCo Ltd. ended the recent trading session at $14.00, reflecting a 2.51% decline from the previous day, underperforming against the S&P 500's 1.74% drop, indicating market concerns about its future performance.
- Poor Monthly Performance: Over the past month, StoneCo's stock has fallen by 14.88%, significantly exceeding the Computer and Technology sector's 5.77% and the S&P 500's 4.99% declines, highlighting the company's relative weakness in the industry.
- Earnings Report Expectations: The upcoming earnings report is projected to show earnings of $0.45 per share, representing a year-over-year growth of 32.35%, with revenue expected at $694.49 million, indicating a 10.96% increase, showcasing the company's potential for revenue growth.
- Valuation Analysis: Currently, StoneCo has a forward P/E ratio of 7.47, well below the industry average of 18.93, and a PEG ratio of 0.32, suggesting that its stock is undervalued in the market, which may attract value investors' attention.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy STNE?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 13.460
Low
20.00
Averages
22.00
High
25.00
Current: 13.460
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 Ltd. Stock Performance Analysis
- Stock Volatility: StoneCo Ltd. ended the recent trading session at $14.00, reflecting a 2.51% decline from the previous day, underperforming against the S&P 500's 1.74% drop, indicating market concerns about its future performance.
- Poor Monthly Performance: Over the past month, StoneCo's stock has fallen by 14.88%, significantly exceeding the Computer and Technology sector's 5.77% and the S&P 500's 4.99% declines, highlighting the company's relative weakness in the industry.
- Earnings Report Expectations: The upcoming earnings report is projected to show earnings of $0.45 per share, representing a year-over-year growth of 32.35%, with revenue expected at $694.49 million, indicating a 10.96% increase, showcasing the company's potential for revenue growth.
- Valuation Analysis: Currently, StoneCo has a forward P/E ratio of 7.47, well below the industry average of 18.93, and a PEG ratio of 0.32, suggesting that its stock is undervalued in the market, which may attract value investors' attention.
See More
14B Capital Management Sells StoneCo Shares
- Share Sale Details: On February 17, 2026, 14B Capital Management disclosed to the SEC that it sold 322,000 shares of StoneCo, with an estimated transaction value of $5.39 million, reflecting an $8.60 million decrease in the quarter-end position value, indicating the impact of market fluctuations on its investment portfolio.
- Holding Proportion Analysis: Following the sale, StoneCo represents 7.2% of 14B's 13F reportable assets, with major holdings including Mastercard and Visa, each accounting for 19.5% of AUM, showcasing a diversified investment strategy in the payments infrastructure sector.
- Company Performance Highlights: StoneCo generated an adjusted gross profit of approximately R$6.3 billion in 2025, up 13.5% year-over-year, while adjusted EPS rose over 33% to R$9.71, indicating strong performance and growth potential in the Brazilian fintech market.
- Market Competitive Advantage: StoneCo leverages its hyper-local distribution model and tailored services to provide electronic payment and financial solutions to millions of small merchants, further solidifying its competitive position in the rapidly growing Brazilian commerce market.
See More
Brazilian Court Directs StoneCo to Reinstate Approximately 370 Employees Terminated This Week, According to Union
- Company Layoffs: A Brazilian company has fired approximately 370 employees this week, according to union reports.
- Union Response: Unions have commented on the layoffs, indicating concerns over the impact on workers and the labor market.
See More
StoneCo Q4 Earnings Beat Expectations but Stock Plummets
- Earnings Beat: StoneCo reported Q4 earnings of R$2.84 per share, surpassing analyst expectations of R$2.65, yet the stock plummeted 18.7%, indicating a negative market reaction despite the strong performance.
- Significant Sales Growth: The company achieved a 13% year-over-year increase in sales from continuing operations to R$3.7 billion in Q4, with full-year sales rising 17.5% to R$14.2 billion, reflecting robust core business performance.
- Profit Margin Improvement: StoneCo's Q4 net income reached R$706.9 million with a net profit margin of 19%, while the full-year net income stood at R$2.5 billion, maintaining a net profit margin of 17.5%, showcasing stable profitability.
- Strategic Reinvestment: The company plans to reinvest over R$3 billion from the sale of its Linx software assets into its core businesses of payments, banking, and credit, aiming to enhance market competitiveness through data-driven strategies and technology.
See More
StoneCo Reports Q4 Earnings Beat Despite Stock Drop
- Significant Earnings Growth: StoneCo reported a 13% year-over-year increase in Q4 sales, reaching R$3.7 billion, with net earnings of R$706.9 million, reflecting a 12.4% annual growth and demonstrating strong performance in the e-commerce software sector.
- Earnings Per Share Beat: Although analysts expected earnings of R$2.65 per share, StoneCo achieved R$2.84, indicating improved profitability; however, the stock plummeted 18.7%, suggesting a negative market reaction despite the earnings beat.
- Strong Annual Performance: For the full year, StoneCo's sales rose 17.5% to R$14.2 billion, with net income also increasing by 17.5% to R$2.5 billion, maintaining a net profit margin of 17.5%, indicating robust growth in its core business.
- Impact of Asset Sale: StoneCo's sale of Linx software assets generated over R$3 billion last year, which, while not included in regular earnings, will be reinvested into core areas like payments, banking, and credit, highlighting a strategic shift in focus.
See More
StoneCo (STNE) Q4 2025 Earnings Call Transcript
See More
StoneCo Ltd. Stock Performance Analysis
- Stock Volatility: StoneCo Ltd. ended the recent trading session at $14.00, reflecting a 2.51% decline from the previous day, underperforming against the S&P 500's 1.74% drop, indicating market concerns about its future performance.
- Poor Monthly Performance: Over the past month, StoneCo's stock has fallen by 14.88%, significantly exceeding the Computer and Technology sector's 5.77% and the S&P 500's 4.99% declines, highlighting the company's relative weakness in the industry.
- Earnings Report Expectations: The upcoming earnings report is projected to show earnings of $0.45 per share, representing a year-over-year growth of 32.35%, with revenue expected at $694.49 million, indicating a 10.96% increase, showcasing the company's potential for revenue growth.
- Valuation Analysis: Currently, StoneCo has a forward P/E ratio of 7.47, well below the industry average of 18.93, and a PEG ratio of 0.32, suggesting that its stock is undervalued in the market, which may attract value investors' attention.
See More
14B Capital Management Sells StoneCo Shares
- Share Sale Details: On February 17, 2026, 14B Capital Management disclosed to the SEC that it sold 322,000 shares of StoneCo, with an estimated transaction value of $5.39 million, reflecting an $8.60 million decrease in the quarter-end position value, indicating the impact of market fluctuations on its investment portfolio.
- Holding Proportion Analysis: Following the sale, StoneCo represents 7.2% of 14B's 13F reportable assets, with major holdings including Mastercard and Visa, each accounting for 19.5% of AUM, showcasing a diversified investment strategy in the payments infrastructure sector.
- Company Performance Highlights: StoneCo generated an adjusted gross profit of approximately R$6.3 billion in 2025, up 13.5% year-over-year, while adjusted EPS rose over 33% to R$9.71, indicating strong performance and growth potential in the Brazilian fintech market.
- Market Competitive Advantage: StoneCo leverages its hyper-local distribution model and tailored services to provide electronic payment and financial solutions to millions of small merchants, further solidifying its competitive position in the rapidly growing Brazilian commerce market.
See More
Brazilian Court Directs StoneCo to Reinstate Approximately 370 Employees Terminated This Week, According to Union
- Company Layoffs: A Brazilian company has fired approximately 370 employees this week, according to union reports.
- Union Response: Unions have commented on the layoffs, indicating concerns over the impact on workers and the labor market.
See More
StoneCo Q4 Earnings Beat Expectations but Stock Plummets
- Earnings Beat: StoneCo reported Q4 earnings of R$2.84 per share, surpassing analyst expectations of R$2.65, yet the stock plummeted 18.7%, indicating a negative market reaction despite the strong performance.
- Significant Sales Growth: The company achieved a 13% year-over-year increase in sales from continuing operations to R$3.7 billion in Q4, with full-year sales rising 17.5% to R$14.2 billion, reflecting robust core business performance.
- Profit Margin Improvement: StoneCo's Q4 net income reached R$706.9 million with a net profit margin of 19%, while the full-year net income stood at R$2.5 billion, maintaining a net profit margin of 17.5%, showcasing stable profitability.
- Strategic Reinvestment: The company plans to reinvest over R$3 billion from the sale of its Linx software assets into its core businesses of payments, banking, and credit, aiming to enhance market competitiveness through data-driven strategies and technology.
See More
StoneCo Reports Q4 Earnings Beat Despite Stock Drop
- Significant Earnings Growth: StoneCo reported a 13% year-over-year increase in Q4 sales, reaching R$3.7 billion, with net earnings of R$706.9 million, reflecting a 12.4% annual growth and demonstrating strong performance in the e-commerce software sector.
- Earnings Per Share Beat: Although analysts expected earnings of R$2.65 per share, StoneCo achieved R$2.84, indicating improved profitability; however, the stock plummeted 18.7%, suggesting a negative market reaction despite the earnings beat.
- Strong Annual Performance: For the full year, StoneCo's sales rose 17.5% to R$14.2 billion, with net income also increasing by 17.5% to R$2.5 billion, maintaining a net profit margin of 17.5%, indicating robust growth in its core business.
- Impact of Asset Sale: StoneCo's sale of Linx software assets generated over R$3 billion last year, which, while not included in regular earnings, will be reinvested into core areas like payments, banking, and credit, highlighting a strategic shift in focus.
See More
StoneCo (STNE) Q4 2025 Earnings Call Transcript
See More
