Why Did StoneCo Stock Crash Today?

Brazilian e-commerce bundle company StoneCo (NASDAQ: STNE) banal got crushed similar chalk aft reporting Q4 net past night, contempt beating expert forecasts. StoneCo was expected to gain 2.65 Brazilian reais (R$) per stock successful Q4, according to Yahoo! Finance, but really earned R$2.84.

Nevertheless, arsenic of 11:10 a.m. ET Tuesday, StoneCo banal is down 18.7%.

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StoneCo's net reports tin beryllium pugnacious to way down, but this 1 is recovered successful a property merchandise connected the SEC website. There, we larn that StoneCo grew its income from continuing operations 13% twelvemonth implicit twelvemonth to R$3.7 cardinal successful Q4, with full net of R$706.9 million.

That's 12.4% year-over-year net growth, and a nett net borderline of 19%.

For the afloat year, income from continuing operations were up 17.5% to R$14.2 billion, with nett income of R$2.5 billion, besides up 17.5%, and a nett net borderline of 17.5%!

These numbers bash not number the much than R$3billion StoneCo received from the merchantability of its Linx bundle assets past year. StoneCo noted it volition usage the merchantability proceeds to reinvest successful its halfway businesses of "payments, banking, and credit, each reinforced by proprietary transaction data, heavy distribution, disciplined underwriting, and end-to-end technology."

For the afloat year, StoneCo reported adjusted net per stock of R$9.71 (USD 1.89), up 33.6% from 2024. And this fig appears to see proceeds from the Linx sale.

How should investors work each the above? $1.89 per stock successful nett connected a banal costing a spot nether $14 per stock is simply a P/E of astir 7.3x. Granted, overmuch of the nett came from the Linx sale, but with profits ex-that merchantability inactive rising astatine a 17.5% clip, StoneCo banal looks inexpensive to maine today.

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