Bearish thesis on PagSeguro focused on limited growth potential and threat from PIX Parcelado

From Yahoo Finance: 2025-06-09 14:23:00

Quipus Capital’s bearish thesis on PagSeguro Digital Ltd. (PAGS) focuses on the company’s core business model of receivables discounting rather than payment processing, leading to limited growth potential in a saturated market. The looming launch of PIX Parcelado poses a significant threat to PAGS’s profitability.

In contrast, the bullish thesis on Block, Inc. highlights its evolution into a vertically integrated fintech ecosystem with scale advantages in Cash App and Square, improved profitability, and underappreciated assets like Tidal. Block’s focus on innovation and ecosystem synergy positions it favorably compared to PagSeguro.

PagSeguro Digital Ltd. (PAGS) is not among the 30 Most Popular Stocks Among Hedge Funds, with 29 hedge fund portfolios holding PAGS at the end of the first quarter. While PAGS has potential as an investment, some AI stocks are seen as offering higher returns with limited downside risk, making them more attractive options for investors.

Read more: PagSeguro Digital Ltd. (PAGS): A Bear Case Theory