We recently compiled a list of the Why These 15 Tech Stocks Are up the Most So Far in 2025. In this article, we are going to take a look at where StoneCo Ltd. (NASDAQ:STNE) stands against the other tech stocks.
Most tech stocks haven’t been doing well so far this year, but this isn’t a problem that all tech stocks face. The technology sector is broad, and there are always some stocks that still do well regardless of the broader market environment.
Many of these companies are leading the way in artificial intelligence, cloud computing, and cybersecurity. Their ability to adapt and launch new solutions has set them apart from the pack. For example, firms that reported robust growth in large customer contracts or unveiled breakthrough AI tools have seen their shares surge, even as industry giants have struggled with market volatility.
It’s worth looking into these winners if you’re looking for opportunities in this market.
Methodology
For this article, I screened the best-performing tech stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A team of software engineers in a digital workspace collaborating on a financial technology software solution.
StoneCo Ltd. (NASDAQ:STNE)
Number of Hedge Fund Holders In Q4 2024: 24
StoneCo Ltd. (NASDAQ:STNE) is a leading provider of financial technology and software solutions that empower merchants to conduct commerce seamlessly across multiple channels and help them grow their businesses.
The stock is up significantly so far in 2025 as it released stellar Q4 2024 results in March, which significantly exceeded forecasts and led to a 14.93% single-day stock surge on March 19.
StoneCo Ltd. (NASDAQ:STNE) reported net income growth of 41% year-over-year. It also has a strong 14% compounded annual growth rate in revenue and a 92% CAGR in EPS.
CEO Pedro Zinner announced strategic initiatives to enhance balance sheet efficiency and reduce capital costs throughout 2025, fostering positive investor sentiment despite his cautionary outlook about higher long-term interest rates potentially affecting economic activity. The company further boosted investor confidence by announcing a new share repurchase program of up to 2 billion Brazilian reals late last year.
The consensus price target of $14.5 implies 20% upside.
STNE stock is up 51.32% year-to-date.
Overall STNE ranks 8th on our list of the tech stocks that are up the most so far in 2025. While we acknowledge the potential of STNE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than STNE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
