Thursday, October 28, 2021

StoneCo update / Why I'm still bullish (STNE)

 StoneCo stock has been on quite a rollercoaster ride since it's IPO in late 2018.  After almost 2 years of trading, the stock has gone from an IPO price of $23.57, up to $85.81 in Feb of 2021 and all the way back down to $35.26 currently.

What happened?

StoneCo launched a credit service 2 years ago which was gaining a lot of traction. 6 months ago, the Brazilian government started implementing a new national payment system which has had a shaky launch.

StoneCo has announced that it will pause it's own service until it can comply with new regulations.

All this news has troubled investors and sent the stock tumbling.

StoneCo's core product - digital payments is going fantastically well, surpassing one million users this year.

So I'm not selling and not adding. Holding still.

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