StoneCo Ltd. announced a strategic divestiture of its software segment, selling Linx and related assets to TOTVS for R$3.41 billion and SimplesVet to PetLove for R$140 million. The move aims to focus on micro, small, and medium business (MSMB) growth, with MSMB total payment volume (TPV) rising 17% YoY to R$119.5 billion in Q1 2025. Competitors like PagSeguro and MercadoLibre also show MSMB growth, while StoneCo’s stock surged 76.5% YTD with a low forward P/E of 8.66X. The company projects MSMB TPV to exceed R$670 billion by 2027.

StoneCo Ltd. (STNE) reports 17% YoY growth in MSMB TPV to R$119.5 billion in Q1 2025, driven by repricing, product adoption, and a 38% increase in heavy users. The company projects MSMB TPV to exceed R$670 billion by 2027, despite competition from peers like PagSeguro and MercadoLibre. StoneCo's shares surged 71.5% YoY, with a forward P/E of 8.42X, below industry averages. Zacks estimates suggest 10.37% and 16.11% EPS growth for 2025 and 2026, respectively.

StoneCo Ltd. disclosed the divestment of certain software assets in a regulatory filing with the U.S. Securities and Exchange Commission, as part of its July 2025 Form 6-K submission. The announcement, signed by Chief Legal and Compliance Officer Tatiana Malamud, includes an exhibit titled 'StoneCo Announces Divestment of Software Assets,' but no details about the assets, transaction terms, or counterparties were provided.

The Teacher Retirement System of Texas purchased 25,254 shares of StoneCo Ltd. (NASDAQ:STNE) in Q1 2025, valued at $265,000. Multiple institutional investors also adjusted their positions in StoneCo, including GAMMA Investing LLC, Sterling Capital Management LLC, and Wexford Capital LP. StoneCo reported Q1 earnings of $0.34 EPS, exceeding expectations, with revenue of $625.86 million. Analysts have updated ratings, with Santander and Citigroup upgrading their outlook, while Wall Street Zen downgraded the stock. StoneCo provides financial technology solutions to merchants in Brazil.

The article discusses MercadoLibre's MELI leading in Latin America's acquiring business, its ecosystem of financial services, and growth metrics. It highlights competition from StoneCo and DLocal, MELI's stock performance, and valuation metrics, emphasizing its dominance in fintech payments and digital financial inclusion.