Stock Market News 11 December 2025

January 21, 2026, 3:57 PM EST. StoneCo (STNE) has seen its share price fall 20% over the past 90 days after a strong 72.27% gain over the last year, raising questions about its current valuation. Trading at $14.54 with a price-to-sales (P/S) ratio of 1.4x, StoneCo appears undervalued relative to peers (2.2x) and the broader US diversified financials sector (2.6x). The P/S ratio compares market value to revenue, suggesting the market is cautious due to StoneCo's recent net loss and debt concerns. Valuation models estimate a fair value around $41.22 per share and a P/S of 2.7x, implying the stock may be priced with pessimism. Investors should consider StoneCo's 5-year shareholder return drop of 80.19% and ongoing profitability challenges before concluding if this is a genuine buying opportunity in fintech and payments.