Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

StoneCo shares dip amid low Linx bids and Brazil market weakness

admin by admin
November 29, 2024
in Stock
0
StoneCo shares dip amid low Linx bids and Brazil market weakness
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

On Friday, shares of StoneCo (NASDAQ:STNE), a Brazilian financial technology company, declined following revelations that it has received multiple nonbinding offers for its software unit Linx that are below the purchase price from 2020. The decline also coincided with a broader weakness in Brazil’s stock market.

StoneCo’s acquisition of Linx in 2020 is now under scrutiny as the company considers bids for the unit. Despite having 20 potential bidders sign non-disclosure agreements to review sale details, only six have submitted non-binding offers. Among the interested parties are Brazilian software company Totvs SA and Canada’s Constellation Software (ETR:SOWGn), although Totvs has confirmed it has yet to make an offer.

The bids presented thus far have not met StoneCo’s expectations, with some being more than 50% lower than the acquisition price paid for Linx four years ago. However, sources indicate there are higher offers, and StoneCo is unlikely to sell the unit for significantly less than 5 billion reais.

StoneCo had previously engaged J.P. Morgan and Morgan Stanley (NYSE:MS) to facilitate the sale of Linx, as reported in September. The company has since confirmed employing advisors to explore options for its software business, though it has not set a deadline for the sale.

The tech firm is reportedly in a solid financial position, diminishing the urgency to sell Linx. This is further evidenced by StoneCo’s recent authorization of a share repurchase program valued at up to 2 billion reais.

The broader Brazilian market’s downturn ahead of the government’s tax reform announcement also contributed to StoneCo’s stock performance. The new proposal from Brazil’s government aims to expand income tax exemptions for lower-income citizens while increasing taxes for higher earners, alongside plans to reduce public spending in the future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

This post appeared first on investing.com

Previous Post

JPMorgan is bullish on European hotel stocks, upgrades 2 names

Next Post

It’s not just Tesla: self-driving regulations boost Uber stock too

admin

admin

Next Post
It’s not just Tesla: self-driving regulations boost Uber stock too

It’s not just Tesla: self-driving regulations boost Uber stock too

Trending News

Is natural gas a ‘buy’ as Microsoft say it could power AI?

Is natural gas a ‘buy’ as Microsoft say it could power AI?

March 12, 2025
Saudi Arabia stocks higher at close of trade; Tadawul All Share up 1.14%

Saudi Arabia stocks higher at close of trade; Tadawul All Share up 1.14%

September 24, 2024
It’s earnings season!

It’s earnings season!

October 17, 2024
Subscribe to Insightful Word


    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025
    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    June 26, 2025
    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    June 26, 2025

    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025

    Latest News

    • S&P 500 nears record high despite headwinds: key drivers behind the surprise rally
    • Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high
    • S&P 500 nears record high as Wall Street opens higher amid tech momentum

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.