StoneCo (STNE) shares fell 29.14% after Luiz Inácio Lula da Silva won Brazil's presidential run-off with 51.8% of the vote against 48.2% for Flávio Bolsonaro, erasing gains made earlier this month when Bolsonaro led the first round 47.3% to 44.8%. Investors sold Brazil-related stocks, and Bolsonaro is refusing to concede and challenging the results, alleging abuse of power, though several South American leaders have already congratulated Lula. Investors had hoped a change in administration could improve Brazil's finances, lower debt and tax costs, and strengthen the business climate, which could still happen under a Lula administration that will last into 2030. The stock trades at 4.2 times earnings, and analysts expect earnings to grow more than 16% annually over the next five years.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related news
- Why Grupo Financiero Galicia ADR Crashed Today
Grupo Financiero Galicia ADR (GGAL) fell 7.3% through 11:40 a.m. ET as Latin American stocks sold off. The likely trigger was Brazil's presidential run-off, where incumbent Luiz Inácio Lula da Silva appears to have beaten Flávio Bolsonaro 51.8% to 48.2%, a result many investors had not expected. Bolsonaro has refused to concede, alleging the government suppressed votes in districts that lean toward him, while Argentine President Javier Milei, per Bloomberg, is the only South American leader not to recognize the result. The article argues the stock is largely insulated from Brazil, since S&P Global Market Intelligence data show 99.9% of its revenue comes from Argentina. It also notes the stock trades at 7.5 times current-year earnings estimates and is expected to double earnings per share over the next two years, and suggests the sell-off may be a good time for investors to act.
- Why PagSeguro Stock Crashed Today
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.
- Brazil Final Debate : Lula Hits Rival Over Trump Tariffs
At Brazil's final debate on Friday 23 October, President Lula said rival Flávio Bolsonaro was “licking up to Trump to get Brazil taxed”, and said his government had opened 700 new markets, a figure Globo's fact-check desk put at 707 farm markets since 2023. Lula also criticised Flávio's request in July to the US trade representative for a 180-day delay of planned 25% tariffs on Brazilian goods, calling it an act of “traitors of the homeland”. Flávio apologised after a jab at Lula's missing finger, and the debate also covered Argentina's Javier Milei. The runoff on Sunday 25 October is a near tie in recent polls according to O Globo, while Polymarket gave Flávio Bolsonaro 79.7% to win.
- Latin America Pulse: Brazil Runoff, Peso Moves
Brazil holds a presidential runoff on Sunday, 25 October, between President Luiz Inácio Lula da Silva and Senator Flávio Bolsonaro, and an Alfa Inteligência poll shows a near tie with Flávio at 49.9% and Lula at 46%, within a 1.9-point margin of error. Traders on Polymarket and Kalshi, who bet real money, give Flávio about a 78% chance of winning. Brazil's Ibovespa index rose 0.47% to 205,083 points and the real strengthened to 4.97 per US dollar, while Argentine bank shares jumped about 5% in New York. Chile's peso weakened 0.9% to 995 per US dollar. Colombia's peso gained 0.3% to 3,187 as Brent crude rose above US$116 a barrel.
- News Analysis : How West Bank settler violence is testing Israel ahead of elections
- Brazil’s Stock Market Crashes After Lula’s Upset Victory
Brazil's stock market lost more than 200 billion USD in value at Monday's open after Lula beat Flávio Bolsonaro in the runoff, winning 51.79% to 48.21%. The iShares MSCI Brazil ETF (EWZ) fell as much as 26%, the Ibovespa dropped as much as 17% to about 170,000 points, and the dollar rose as much as 12% against the real. B3 halted trading for 30 minutes after the Ibovespa fell 10%, its first circuit breaker since the COVID-19 pandemic. Before the vote, Polymarket and Kalshi had priced Bolsonaro's chances of winning at 82% and roughly 80%, while polls had shown a near tie. Bolsonaro said he does not recognize the result and will ask the courts to annul the election.
Related markets
Latest news
- Anthropic is leasing data centers to reduce reliance on Amazon, Google, others
Anthropic (ANTH.PVT) says it is increasingly leasing AI data centers under its Anthropic Direct initiative, to meet its large computing needs beyond capacity bought from cloud providers such as Amazon (AMZN) and Google (GOOG, GOOGL). According to its S-1 prospectus made public on Monday, this hybrid model could also bring long-term economic advantages. In November 2025, the company announced a $50 billion investment in which Fluidstack will build data centers in Texas and New York. Meanwhile, data centers face opposition from communities over air and noise pollution and water use, with towns and counties issuing moratoriums or bans, and New York imposing a one-year statewide moratorium. Anthropic lists further moratoriums as a key risk factor and says it is expanding capacity internationally to reduce concentration risk in the United States.
- Nearly 300 Employees Leave a Securities Firm in Q3
As of the end of Q3 2026, VPS Securities (VCK) had 1,635 employees, down 286 from the end of Q2, a decline of nearly 15% in three months. Compared with the peak of 2,561 at the end of Q2 2022, headcount is down 926, or about 36%. The cuts come as brokerage faces pressure from weakened market liquidity, with brokerage revenue falling 68.2% year on year to about 485 billion VND. Total operating revenue in Q3 was 2,076 billion VND, down 23.3%, and after-tax profit was nearly 894 billion VND, down 20.7%. Margin lending income, however, rose 34.3% to nearly 948 billion VND, and nine-month pre-tax profit still grew 27% to 4,044 billion VND.
- Bristol Myers Squibb: Bargain Buy or Value Trap?
Bristol Myers Squibb (BMY) has a market cap of about $125 billion, but its stock has returned just 6% over five years, while the S&P 500 returned nearly 70%. In the first six months, legacy portfolio revenue fell 6% excluding FX, while the growth portfolio grew 12% organically; overall revenue rose just 3% organically. The stock is up nearly 14% this year, slightly ahead of the S&P 500's roughly 12%. It trades at about nine times estimated future earnings versus the S&P 500's average of 19, and pays a 4.1% dividend with a payout ratio of around 55%. The author views the stock as undervalued, while acknowledging the company is dealing with patent expirations.
- Microsoft offers voluntary exit packages to 60,000 staff
Microsoft is offering voluntary buyouts to about 60,000 employees, roughly a quarter of its workforce, as it cuts costs while investing heavily in AI. Eligible staff are vice president level and below on select teams in the US, Canada, India and Britain, while groups including some data center, sales and marketing employees are excluded. This is the second voluntary offer this year; in April, Microsoft reportedly offered about 7% of its US workforce early retirement, and around 30% of those eligible took it, according to CNBC. Headcount fell from 228,000 at the end of 2025 to 223,000 at the end of June, per regulatory filings, and about 27% of the workforce is eligible for the new offer. The move comes amid tech layoffs at Meta, Amazon, Uber and others, and the company is expected to report quarterly earnings this week.
- 5 Key Numbers From Anthropic's S-1 Filing
Anthropic has filed its S-1 registration statement, plans to list on Nasdaq under the ticker ANT, and is reportedly looking to raise $100 billion at a valuation of up to $2 trillion. Second-quarter 2026 revenue reached $11.6 billion, compared with $787 million in the same quarter of 2025 and roughly $4.7 billion in the prior quarter; first-half revenue totaled nearly $16.3 billion, a 12.5-fold increase year on year. The filing lists spending commitments on compute and infrastructure totaling $637 billion, the largest being $161.2 billion with Broadcom for TPU compute capacity over five years. First-half gross margin was 85% based on the reported cost of revenue, while R&D costs of about $9.7 billion and sales and marketing costs of $3.8 billion sit outside cost of revenue. In the third quarter, 79% of revenue came from customers outside the top five, and no single customer accounted for more than 10% of revenue in the nine months ending Sept. 30.
- Tesla stock leaves rest of the Magnificent 7 in the dust, surging to October’s top spot
Tesla (TSLA) shares rose about 6% on Monday, their best day since early July and highest close in about 3 months. The stock is up double digits in October, the best in the Magnificent 7, though it is still down double digits for 2026. It broke above $386, which is both its highest October close and roughly its 200-day moving average, as Barclays raised its price target to $450 from $370 on the view that a merger with SpaceX (SPCX) could give shareholders a takeout premium. No deal has been announced, though Musk confirmed the two companies formed independent committees to explore a combination. The article says holding $386 keeps the rally on course, while a drop below it would turn Monday's gain into a one-day pop, with the next level to watch in the low $450s.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.