Why Is Fintech Company StoneCo Stock Trading Lower Today?
Portfolio Pulse from Lekha Gupta
StoneCo Ltd. (NASDAQ:STNE) shares fell after reporting Q1 FY24 results with revenue and income missing consensus estimates. Revenue grew 13.8% Y/Y, but adjusted EPS missed expectations. The company sees positive growth in its MSMB segment and expects significant TPV growth by FY27. Exposure to STNE can also be gained through GABF and FBZ ETFs.
May 14, 2024 | 3:45 pm
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NEGATIVE IMPACT
StoneCo reported lower than expected Q1 FY24 earnings, causing its stock to drop. Despite revenue growth, both revenue and adjusted EPS missed consensus estimates.
The direct impact on STNE's stock price is negative due to the earnings miss, which typically leads to a decrease in investor confidence and can result in a short-term decline in stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
First Trust Brazil AlphaDEX Fund (NASDAQ:FBZ) also provides exposure to StoneCo, potentially impacting its performance due to STNE's earnings miss.
FBZ, like GABF, is exposed to STNE's performance. While the earnings miss may pose a risk, the diversified nature of ETFs helps mitigate the impact of individual stock movements.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Gabelli ETFs Trust Gabelli Financial Services Opportunities ETF (NYSE:GABF) offers exposure to StoneCo, which may indirectly affect its performance.
GABF's exposure to STNE means that STNE's performance can indirectly affect GABF, but the diversified nature of ETFs typically buffers against the impact of a single stock's performance.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50