StoneCo: This Turnaround Is A Turning

Nov. 20, 2022 9:54 AM ETStoneCo Ltd. (STNE)18 Comments
Heisenberg View profile picture
Heisenberg View


  • StoneCo listed in 2018 as a high growth quality compounder, a rare growth stock with profits. This led to a very speculative price being reached.
  • The stock later dropped 90% as country risk, enhanced competition, loan losses, bad investments, regulatory change, increasing interest rates, and too many projects led to a drastic reduction in performance.
  • Recent results suggest growth, profitability, and focus are better aligned.
  • Yet the valuation suggests they are not. An opportunity may exist.

Joven pagando con teléfono móvil en un mercadillo

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This is my third article on StoneCo (NASDAQ:STNE). Let's see if my timing is better this time! Whilst I originally purchased StoneCo around its IPO price of $25 many years ago, and enjoyed its wild

This article was written by

Heisenberg View profile picture
A scientist working on quantum theory that became an investor due to the influence of the writings of Benjamin Graham, Peter Lynch, Michael Burry, and Philip Fisher.

Disclosure: I/we have a beneficial long position in the shares of STNE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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