Amid rising interest rates and a drastic rotation out of technology, fintech stocks have taken a beating this year, vastly underperforming the overall market. Global X FinTech ETF (FINX), which tracks an index of up to 100 fintech stocks, has plunged over 53% this year versus the S&P 500’s loss of 20%. Many fintech names are also feeling the pressure from the recent plunge in digital currency prices resulting from the FTX bankruptcy. Meanwhile, competition in the space is intensifying as a wave of fintech startups aim to draw in merchants.  

Nevertheless, the shift in consumer spending habits to online and mobile platforms is undeniable. Expansion of the adoption of contactless payment and the growing popularity of “buy now, pay later” transactions should serve as significant tailwinds for the strong names in the industry. 

With a potential rebound for fintech stocks on the horizon in 2023, many investors are considering stocks from the group that have had their prices recently slashed. In today’s trade alert, we’ll discuss a fintech name that’s gaining the attention of institutional brokers and retail Investors alike.    

---

---

StoneCo Ltd. (STNE) provides back-office software, loans, and other financial services to small and medium-sized businesses with a focus on reinvesting the cash it generates to acquire or build new financial products for its customer base. Since early 2019, the company has grown the number of small and medium business clients by 3x, revenue by 2.3x, and net income by 2.2×. 

Stoneco has developed a range of payment solutions utilized by e-commerce for businesses and merchants all over Latin America. In the third quarter, Stoneco reported about $390 million in revenue and earnings. Small and medium-sized businesses using the platform surpassed 2.3 million, and total payment volume in the quarter also grew to close to $14 billion.

Stoneco stock is down close to 53% this year on news of rising interest rates, macroeconomic risks in Brazil, and some operational blunders. But base interest rates in Brazil seem to have peaked. A potential decline in the second half of 2023 is expected as Brazil’s inflation normalizes, reducing the margin pressure from rising financial expenses. Meanwhile, StoneCo’s revenue growth should benefit from rising digitization of payments, higher take rates, and elevated growth in banking and software. STNE stock currently trades at roughly 1.4 times projected forward revenue and 33 times forward earnings, which seems fair for a disruptive, fast-growing company in a developing market.

Some prominent institutional investors have recently taken a shine to STNE. At the end of the third quarter, Berkshire Hathaway disclosed a new $110 million position in the company. Cathie Wood’s Ark Innovation fintech exchange-traded fund (ARKF) also owns roughly 2.55 million shares of the payments company valued at more than $26.5 million. STNE has a Hold rating from the pros who cover it and a median target price of $12.20, representing a 32% increase from Tuesday’s closing price. 

Read Next – Gas Price WARNING for all Car Owners 

We’ve reached a tipping point.

A secretive startup has cracked the battery code… and is leading the way in a technological breakthrough that experts say could power every single EV on the planet.

If you invest in this new technology, your chance of making money from the EV revolution skyrockets.

In fact, this battery is going to make EVs so affordable, mass adoption is no longer an IF… it’s a WHEN…

Making gas-powered cars obsolete.

Whitney Tilson, the hedge fund manager who’s nicknamed “The Prophet,” says: “I assure you with 100% certainty this is happening, and for one simple reason: economics.“

Think about it…

You might not want an EV for yourself.

But if you’re a millennial looking to buy a new car and you have the option of a safer, more powerful vehicle that is cheaper to buy… costs 90% less to run… lasts up to six times longer… and is good for the environment…

Why would you choose the alternative?

Some car manufacturers are scrambling to keep up…

“Established carmakers around the world are ripping up their business models in the hope of adapting to a new world in which electricity replaces gasoline and diesel,” says a CNN contributor.

Problem is…

As they jockey for position, guessing which car company will become the next king of EVs is a gamble for anyone wanting to profit from the situation.

But this battery company could be the key to unleashing millions of dollars in new wealth.

Today… as in right now… you can buy shares of the company pioneering this new technology…

A Wall Street Veteran predicts it will trigger a 1,500% gain in EV sales over the next four years.

In time, it could easily become a household name like Microsoft, Intel or Oracle.

The company operates out of this Silicon Valley laboratory, which The Washington Post calls a “billionaire factory”… because for early investors, the potential to make money is off the charts.

To check out what The Wall Street Journal calls “the hot battery startup that could zap Tesla,” click here now.