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Stock impact report

StoneCo: I Am Doubling Down To Secure A Double-Digit Buyback Yield [Seeking Alpha]

StoneCo Ltd. - Class A Common Share (STNE) 
Company Research Source: Seeking Alpha
StoneCo's Q4 report added to investor worries as the stock collapsed 20% in response to weak TPV growth and a lackluster guidance for 2027. Gross profit guidance for 2027 was slashed from R$10.2B to R$7.2–8.3B, reflecting Linx divestiture and operational headwinds. A deeper dive into StoneCo's filings reveals a few red flags that need to be monitored closely. StoneCo's buyback potential is a real game-changer at these beaten down prices. Even in the base-case scenario, we are looking at a buyback yield of close to 11%. rparobe/E+ via Getty Images My investment in StoneCo ( STNE ) stock back in November 2021 has not gone that well. After 4+ years, I am sitting on a meager gain of ~4% on my initial investment while the S&P 500 has rallied almost 50% during this time. As much as I This article was written by Analyst's 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 my Show less Read more
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