Why PagSeguro Digital (PAGS) Stock Crashed Yesterday

We recently compiled a list of the Traders Flee These 10 Stocks Today. In this article, we are going to take a look at where PagSeguro Digital Ltd. (NYSE:PAGS) stands against other stocks that crashed yesterday.

Wall Street’s main indices ended mixed on Thursday as investors continued to digest a series of first-quarter earnings and key economic data.

Among the three indices, only the Nasdaq registered losses, down 0.18 percent. In contrast, the Dow Jones grew by 0.65 percent while the S&P 500 rose by 0.41 percent.

Meanwhile, 10 companies registered hefty losses during the session, battered by a flurry of negative news, missed estimates, and a weak outlook for the rest of the year. In this article, let us explore the 10 companies that lag in performance and identify the reasons behind their decline.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.

A businessperson standing in front of a brick-and-mortar establishment using a tablet to process an in-person payment.

PagSeguro Digital Ltd. (NYSE:PAGS)

PagSeguro Digital, a Brazil-based financial services and digital payments company, saw its share prices tumble by 8.02 percent on Thursday to end at $8.95 apiece after missing analyst estimates for its first quarter earnings performance.

In its earnings release, PagSeguro Digital Ltd. (NYSE:PAGS) said it achieved an 8.9-percent increase in net income at R$525 million from R$482 million in the same period last year. Revenues grew by 12.6 percent to R$4.85 billion from R$4.3 billion year-on-year.

Earnings per share settled at R$1.72, falling short of the R$1.85 as expected by analysts.

Looking ahead, PagSeguro Digital Ltd. (NYSE:PAGS) said it is confident to deliver and achieve its 2025 guidance, saying that the bank is “a company recognized for its strong track record in delivering results and balancing growth with profitability despite economic cycles.”

Overall, PAGS ranks 7th on our list of stocks that traders flee today. While we acknowledge the potential of PAGS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PAGS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.