“Markets have memories” is an old adage on Wall Street. And if it’s true, it could mean that after a long and painful decline, shares of StoneCo Ltd. STNE may have found a bottom.
After the COVID-19 crash, StoneCo found support around $20 a share. When it fell to this level there was enough demand, or buyers, to absorb all of the shares that were for sale. This is why the sell-off ended when it reached it.
Now the stock has dropped back to this important level. If the market remembers it was support, it may become so again and the stock may be about to rebound.
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