StoneCo Ltd. (NASDAQ: STNE) saw its shares plummet 7.26% in Thursday's trading session, despite reporting third-quarter earnings that met analyst expectations. The Brazilian fintech company's stock decline came amid a broader market selloff, with technology and growth stocks particularly hard hit.

StoneCo reported an adjusted net profit of 641 million reais for the third quarter, slightly above the IBES estimate of 639 million reais. The company's recurring revenue came in at 3.6 billion reais, exactly in line with analyst projections. Despite these seemingly positive results, investors appeared to react negatively, possibly due to high expectations or concerns about future growth prospects in the face of macro-economic headwinds.

The sharp decline in StoneCo's stock price also reflects the overall risk-off sentiment that dominated markets on Thursday. Major U.S. indices, including the S&P 500 and Nasdaq 100, experienced significant drops as investors grappled with mixed corporate earnings and renewed concerns over the labor market. The selloff was particularly pronounced in AI-linked and high-growth technology stocks, a category that often includes fintech companies like StoneCo. This broader market context likely exacerbated the downward pressure on StoneCo's shares, despite its in-line earnings report.