Author Topic: STNE - StoneCo Ltd  (Read 2504 times)

RadMan24

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Re: STNE - StoneCo Ltd
« Reply #10 on: February 20, 2019, 09:28:59 PM »
The incumbents will be lowering price, but that's because they're being disrupted and don't have a solution.

The SA article referenced above points out a few differences between Stone and Pags.
1.) Stone is lower priced but has better TPV (again reference STNE's growth rates in the coming quarters)
2.) Stone is built on customer service first, no one else is (why is this important?)
3.) Stone's ecosystem is more "open" resulting in other service providers offering solutions to on Stone's platform (also provides for potential vertical acquisitions)
3.) Stone's business model may end up being more stickier than incumbents and Pags.

PAGS is nice, but I rather not have to worry about management focusing b/w consumer and merchant aspects. Square changed its business model which is often underrated how great of a strategic move it was. The PAGS to Square comparison isn't as strong as many believe it is (often cited for valuation reasons).

Just for fun, StoneCo's explanation of culture from prospectus:
 
         *  The Reason—Our culture is centered on the fundamental belief that our clients drive everything we do. We also emphasize to our clients that, like them, we have also worked hard to start and grow a new business. We believe that building and maintaining close and active relationships with our clients will improve our ability to innovate, expand our leadership in the market, and grow our business.

     •    Own It—We expect that all employees present an “owner” mindset and use their intelligence to resolve problems with a primary focus on making our clients’ experience great. We constantly strive to recognize exceptional achievement.

     •    No Bullshit—We encourage respectful candor in all interactions and aim to be straight to the point. We criticize ideas, not people. We expect our teams to always choose the correct path, not the quickest.

     •    Team Play—We have learned that people achieve greater results together. We believe that more ideas flourish, are debated better, and questioned more effectively in teams. As a result, we strive to work together and constantly look for people with complementary skills to join our team.

    •   Live the Ride—We believe we will evolve more effectively by trying new ideas and improving on them with energy and passion. New ideas need to be tested in a controlled way, and only scaled once they have demonstrated authentic promise.

https://www.sec.gov/Archives/edgar/data/1745431/000119312518309043/d580263d424b4.htm



RadMan24

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Re: STNE - StoneCo Ltd
« Reply #11 on: March 18, 2019, 08:39:27 PM »
The inflection point appears to have arrived.

I’d be damned if the stock was weighed down simply because of competition concerns, market may readjust.

https://investors.stone.co/news-releases/news-release-details/stoneco-reports-fourth-quarter-and-fiscal-year-2018-financial



scorpioncapital

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Re: STNE - StoneCo Ltd
« Reply #12 on: March 19, 2019, 05:42:15 AM »
Most likely I'm missing something but they earned something like 75 million usd in 2018 and have a market cap of 10 billion or 133x earning?

cameronfen

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Re: STNE - StoneCo Ltd
« Reply #13 on: March 19, 2019, 07:39:16 AM »
Most likely I'm missing something but they earned something like 75 million usd in 2018 and have a market cap of 10 billion or 133x earning?

They are growing at 100+% a year.  Fourth quarter earnings was around 40 million by itself.  Valuation is high no way around it.