Stone down 27%…

"In this case, the plunge appears to be triggered by a move from a rival company. Itau Unibanco Holding SA (NYSE:ITUB), a large Brazilian bank, said that it will begin to advance credit card payments to small and medium-sized merchants.

Itau’s card-processing unit, Rede, will pay merchants in just two days, much faster than the 30-day industry standard. This could certainly put pressure on other payment processors in the Brazilian market, including StoneCo."



This is actually very big brews. A good bulk of Stone’s and PAGS revenue is from advances. The reason I didn’t buy Stone or PAGS, despite their huge growth, is the same reason I will not buy ZM at 50x revenues, lack of substantial moat from the competition.