PagSeguro (PAGS) shares fell 26.4% as of 11:20 a.m. ET, after surging earlier this month when conservative candidate Flávio Bolsonaro led incumbent Luiz Inácio Lula da Silva 47.3% to 44.8% in Brazil's first round. Lula won the second round with 51.8% of votes to Bolsonaro's 48.2%, prompting investors to pull back from Brazil-related stocks broadly. Bolsonaro is refusing to concede and challenging the results, alleging the administration suppressed voting in key districts, though it is unclear whether the claims have merit. Several South American heads of state have already congratulated Lula, who will likely remain in office through 2030. The article notes PagSeguro trades at 7.7 times trailing earnings, with analysts expecting more than 10% annual earnings growth over the next five years, which it says makes the stock look cheap regardless of the election outcome.
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