What happened Shares of the Brazilian fintech company StoneCo (NASDAQ: STNE) plummeted more than 36% this week, as of market close Thursday, after StoneCo reported earnings results for the third quarter of 2021 that were not well received by the market. So what StoneCo reported a net loss equivalent to $230 million on total revenue equivalent to roughly $270 million. On an adjusted basis, StoneCo reported the equivalent of a roughly $24 million profit, which missed analyst expectations for adjusted net income. Although revenue grew significantly on a year-over-year basis, adjusted earnings suffered because the bank had to recognize a more than $241 million loss associated with its prior investment in Banco Inter. StoneCo took a nearly 5% stake in the company in the second quarter of the year, but since then Banco Inter's stock has not fared well, along with the Brazilian economy. Although not the quarter investors were hoping for, StoneCo, which enables businesses in Brazil to carry out payments and also grow customers, saw total payment volume in its network grow more than 70% year over year across small and medium-sized businesses (SMBs). The company also added a record number of SMBs and micro-merchants to its platform in Q3. Image source: Getty Images. Now what The Brazilian economy and banking landscape present a massive market opportunity and StoneCo should continue to be able to grow customers in a big way. But the economy is currently going through a rough stretch, with the government recently cutting gross domestic product forecasts for 2022 and inflation on the rise. I certainly see an opportunity for this fintech to succeed in the long run, but the stock is likely to trade with a good deal of volatility due to the market it operates in. 10 stocks we like better than Stoneco LTDWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Stoneco LTD wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Stoneco LTD. The Motley Fool has a disclosure policy.Source