StoneCo Ltd. (NASDAQ:STNE) Sees Promising Growth and Price Target IncreaseStoneCo Ltd. (NASDAQ:STNE) is a leading financial technology company based in Brazil, offering innovative payment solutions to merchants and integrating seamlessly with various e-commerce platforms. Competing in the dynamic Latin American fintech market, StoneCo stands out against rivals such as PagSeguro and MercadoLibre. Recently, Banco Santander set a new price target for StoneCo at $21, suggesting a potential 23.6% increase from i ...

StoneCo Ltd. (NASDAQ:STNE) was downgraded by Santander from "Outperform" to "Neutral".The stock has seen a 9.7% increase over the past month, outperforming the Computer and Technology sector and the S&P 500.Upcoming earnings report on March 2, 2026, is anticipated with earnings of $0.5 per share and revenue of $749 million.StoneCo Ltd. (NASDAQ:STNE) is a prominent player in the financial technology sector, providing payment solutions and software for small and medium-sized businesses in Brazil. The company ...

George Town, Grand Cayman--(Newsfile Corp. - January 22, 2026) - StoneCo Ltd. (NASDAQ: STNE) ("Stone") today announces that it will release its fourth quarter and fiscal year 2025 financial results on Monday, March 02nd, 2026, after the market closes. The Company will also host a conference call to discuss its results on the same day at 5:00pm ET (7:00pm BRT).The conference call can be accessed live over the Zoom webinar (ID: 869 7892 3413| Password: 164760). You can also access the meeting over the phone ...

Core Viewpoint - Despite strong operational execution in the last two quarters, shares in StoneCo (STNE) have decreased by approximately 12.7% since late August 2025 [1]. Group 1: Company Performance - StoneCo has demonstrated strong operational execution over the last two quarters [1]. - The decline in share price of 12.7% indicates potential market concerns despite operational improvements [1]. Group 2: Analyst Insights - The analysis is conducted by an equity research analyst focusing on undercovered stocks in Brazil and Latin America, with occasional insights on global large caps [1]. - The analyst has a beneficial long position in StoneCo shares, indicating confidence in the company's future performance [2].

Core Viewpoint - StoneCo Ltd. announces the resignation of CEO Mr. Pedro Zinner effective March 2026, citing personal reasons, and highlights the company's strategic evolution during his tenure [1][2][3] Leadership Transition - Mr. Zinner has been CEO for three years, leading significant strategic changes including divestment of non-core assets and transitioning Stone into a comprehensive financial services platform [2] - The Board expresses gratitude for Mr. Zinner's leadership and plans to nominate him for election to the Board of Directors, with an expectation of him becoming Chairman [3] - Mr. Mateus Scherer, currently CFO, will be appointed as the new CEO effective March 2026, ensuring continuity in leadership and strategy [4] - Mr. Diego Salgado will take on expanded responsibilities as the new CFO and Investor Relations Officer [5] - Ms. Lia Matos will conclude her role in the company but will remain as an advisor, with her responsibilities being reorganized internally [6] - Mr. Sandro Bassili is expected to become the Chief Operating Officer following the Linx divestiture [7] Company Overview - StoneCo is a leading provider of financial technology solutions, enabling merchants to conduct commerce across multiple channels and grow their businesses through payments, banking, credit, and software solutions [8]

Core Insights - The fintech industry is highly competitive, with PayPal and StoneCo as notable players, each representing different market strategies and growth potentials [1][2]. PayPal Overview - PayPal is focusing on four strategic growth pillars: enhancing checkout, scaling omni-channel services, growing Venmo, and improving profitability for payment service providers (PSPs) [3]. - Venmo's revenue increased over 20% quarter-over-quarter in Q3 2025, with total payment volume (TPV) rising 14% [3]. - Branded checkout is a significant growth driver, with over 60% of branded volume in the U.S. processed through PayPal's enhanced platform [4]. - PayPal is investing in AI-driven e-commerce through partnerships with companies like OpenAI and Google Cloud to enhance shopping experiences [5]. - The company operates a stablecoin, PYUSD, and allows U.S. customers to use cryptocurrency for payments, ending Q3 2025 with $9 billion in cash and equivalents [6]. - Despite a 6% increase in TPV, payment transactions fell 5% year-over-year in Q3 2025, indicating challenges in user engagement [7]. StoneCo Overview - StoneCo reported an 18% year-over-year growth in adjusted net income for Q3 2025, achieving a consolidated return on equity (ROE) of 24% [8]. - The company is divesting non-core assets to focus on financial services, targeting a total addressable market of BRL 100 billion [9]. - StoneCo's MSMB client base grew 17.6% year-over-year to 4.7 million, with total payment volume increasing by 11% [11]. - Active banking clients rose 22% to 3.5 million, with client deposits increasing by 32%, providing a stable funding source [12]. - StoneCo's disciplined approach to pricing and credit provisioning has resulted in a 33% ROE in financial services, indicating strong profitability [13]. Comparative Analysis - StoneCo shows greater upside potential compared to PayPal, benefiting from growth in MSMB clients and the adoption of PIX transactions [10]. - PayPal's growth is driven by Venmo and branded checkout, but it faces declining transaction engagement [10]. - Earnings estimates for PayPal indicate year-over-year increases of 14.8% and 9.7% for 2025 and 2026, respectively [14]. - In contrast, StoneCo's earnings are expected to grow by 25.9% and 15.5% for the same years [17]. - Valuation metrics show PayPal trading at a forward P/E of 10.25X and StoneCo at 7.56X, both below their one-year medians [20]. Conclusion - Both PayPal and StoneCo are pursuing strategies to enhance their long-term prospects, with PayPal focusing on global scale and innovation, while StoneCo capitalizes on Brazil's MSMB segment and demonstrates strong growth potential [25][26].

Core Viewpoint - StoneCo Ltd. (STNE) stock has gained approximately 10% since last July, aligning with the performance of the S&P 500, but it has not yet reached the anticipated target of $30 [1]. Company Analysis - The stock performance of StoneCo has been steady, reflecting broader market trends, but it remains below the target price set previously [1]. - The company is under the coverage of an experienced equity analyst with over 10 years in the investment industry, indicating a level of expertise in the analysis of its stock [1]. Analyst Background - The analyst has a significant following and has contributed to various investment platforms, showcasing a strong reputation in the field [1]. - The analyst is a CFA Level III candidate and holds qualifications from the Chartered Institute for Securities and Investment (CISI), adding credibility to the analysis [1].

Core Viewpoint - StoneCo Ltd. (STNE) stock has gained approximately 10% since last July, aligning with the performance of the S&P 500, but it has not yet reached the anticipated target of $30 [1]. Company Summary - StoneCo Ltd. is currently experiencing a stock price increase, but it remains below the target price set previously [1]. - The company is under analysis by an experienced equity analyst with over 10 years in the investment industry, focusing on small-cap stocks often overlooked by Wall Street [1]. Analyst Background - The analyst has qualifications from the Chartered Institute for Securities and Investment (CISI) and is a CFA Level III candidate, indicating a strong background in investment analysis [1]. - The analyst has contributed to various investment platforms, showcasing a significant following and expertise in equity research [1].

Key Takeaways STNE's client deposits reached R$9 billion in Q3 2025, up 32% year over year, as Pix adoption accelerated.STNE saw Pix transaction volume jump 64% year over year, outpacing cards and driving stronger deposit inflows.STNE shifted 84% of retail deposits to time deposits via cash sweep, targeting 75-125 bps annual net benefit.In the first nine months of 2025, StoneCo Ltd.’s ((STNE) deposit growth was fueled by rising Pix (Brazilian instant payment ecosystem) usage, strategic bundling and its cash ...

Core Insights - StoneCo Ltd. (STNE) shares have increased by 64.3% over the past year, significantly outperforming the S&P 500's 16.3% gain and the Internet-Software industry's 4.7% rise [1][8] - The surge is attributed to strong performance in its financial services sector and strategic decisions, including the divestment of non-core software operations, allowing the company to target over 90% of its total addressable market, estimated at BRL 100 billion [2][8] Financial Performance - StoneCo's adjusted net income rose nearly 22% year over year for the first nine months of 2025, with a return on equity (ROE) of 24%, and the financial services division achieving an ROE of 33% [6][8] - The company's MSMB payments segment saw a 17.6% increase in active clients to 4.7 million, with total payment volume growing 13.2% [10] - Active banking clients increased by 21.8% to 3.5 million, and client deposits surged by 32%, with 84% being time-based deposits [11] Strategic Moves - The divestment of the Linx business reflects a strategic focus on core fintech operations, unlocking capital for high-return initiatives or shareholder returns [7] - StoneCo has executed BRL 2.8 billion in share repurchases over the past year, indicating strong management confidence [9] Market Position and Valuation - Despite the significant price increase, StoneCo trades at a forward P/E of 7.46X, well below its three-year high of 31.33X and the industry average of 34.14X [17][21] - The Zacks Consensus Estimate for earnings per share for 2025 and 2026 has been revised upward, reflecting positive sentiment [14] Growth Potential - The credit portfolio expanded by 148.9% year over year to BRL 2.3 billion, supported by a 139.7% increase in merchant working capital loans [12] - The company's balance sheet remains strong, ending Q3 2025 with BRL 3.5 billion in net cash, suggesting potential for further profitability without heavy reinvestment [13]