STNE: an oversold, overlooked Fintech

$StoneCo (STNE.US)$ For anyone who hasn’t been following STNE too closely, they recently announced earnings and took a nose dive.

Bear in mind, their earnings weren’t necessarily poor. They reported a net income of R$132.7M in Q3 and doubled their customer base (more notably, STNE boasted total annualized revenues of R$5.9 billion in the ER)

As of the end of the quarter, they have 423K active bank accounts which is a >4x increase over the same period in 2020 (and 200k software clients to boot).

Then today, Bradesco, a Brazilian bank that happens to be a direct competitor to STNE downgrades them and they fall another 12%?

Is it just me, or does this smell like free money?