Why StoneCo. Ltd. (STNE) Went Up On Wednesday?

We recently published a list of Pulse of the Market: Wednesday’s 10 Top Performers. In this article, we are going to take a look at where StoneCo. Ltd. (NASDAQ:STNE) stands against other Wednesday’s top performers.

The stock market regained momentum on Wednesday, with all main indices ending in the green, as investors cheered the Federal Reserve’s decision to keep interest rates unchanged.

The tech-heavy Nasdaq led the gains, rallying 1.41 percent, followed by the S&P 500 with a 1.08 percent gain, and the Dow Jones, by 0.92 percent.

Optimism spilled over into companies, with 10 particularly leading the charge. In this article, we have identified Wednesday’s 10 best performers and detailed the reasons behind their gains.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5 million in trading volume.

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StoneCo. Ltd. (NASDAQ:STNE)

StoneCo jumped by 15.53 percent on Wednesday to end at $11.38 each as investors cheered the company’s impressive earnings performance last year.

In its latest earnings release, the Brazilian firm said net income in the fourth quarter of the year rose by 18.1 percent to R$665.6 million from R$563.8 million in the same period a year earlier, as revenues rose 11.1 percent to R$3.609 billion from R$3.248 billion.

Meanwhile, net income for the full year 2024 jumped by 41.3 percent to R$2.2 billion from R$1.557 billion as revenues increased by 10 percent to R$13.257 billion from R$12.055 billion.

Despite the impressive performance, STNE posted a cautious outlook for this year.

“We should prepare for a tough 2025, as projected higher long-term interest rates are expected to impact economic activity. Given interest rate volatility, inflation, and emerging opportunities, prudent capital structure management is paramount,” said STNE CEO Pedro Zinner.

Overall, STNE ranks 1st on our list of Wednesday’s top performers. While we acknowledge the potential of STNE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as STNE but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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