Why PagSeguro Digital Ltd. (PAGS) Surged on Monday

We recently compiled a list of the 10 Firms Post Impressive Gains on Monday. In this article, we are going to take a look at where PagSeguro Digital Ltd. (NYSE:PAGS) stands against the other stocks.

Wall Street ended the first trading day of the week on a mixed note, with the Dow Jones the sole gainer, up 0.65 percent.

The S&P 500 and Nasdaq both fell by a whopping 1.46 percent and 3.07 percent, respectively, over fears that China is overtaking the US in innovations in the Artificial Intelligence industry, dampening confidence at a time when the world’s largest economy is bolstering investments in the sector.

Meanwhile, ten companies under mixed sectors ended the day stronger. In this article, we will take a look at which of the 10 companies posted impressive gains during a broader market pessimism and look at the reasons behind their rally.

Monday’s top advancers only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A businessperson standing in front of a brick-and-mortar establishment using a tablet to process an in-person payment.

PagSeguro Digital Ltd. (NYSE:PAGS)

Brazil-based financial technology company PagSeguro Digital reported a 4.63-percent jump in its share prices on Monday to end at $7.01 apiece—a second consecutive day—as investors took heart from news that Brazil is set to take a more aggressive stance on a rate hike this year in a bid to tame down inflation.

On January 29, Brazil time, the central bank is expected to raise its benchmark Selic rate to 13.25 percent, up from 12.25 percent currently.

Economists reportedly expect a 100-basis-point increase on Wednesday and further hikes in the coming months, with the base rate potentially reaching 14.75 percent in the middle of 2025.

The current monetary tightening cycle began in September 2024, when the reference rate was raised to 11.75 percent from 10.50 percent, previously.

Overall PAGS ranks 4th on our list of Monday’s top advancers. While we acknowledge the potential of PAGS 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 timeframe. If you are looking for an AI stock that is more promising than PAGS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.