Why PagSeguro Stock Crashed Today

PagSeguro stock plummeted 27.4% after Brazil's incumbent President Luiz Inácio Lula da Silva won the presidential election runoff with 51.8% of votes, defeating conservative candidate Flávio Bolsonaro who received 48.2%. Investors had bet on a Bolsonaro victory, hoping his administration would improve Brazil's economic conditions. Despite the selloff, analysts note PagSeguro trades at a cheap valuation of 7.7x trailing earnings with expected 10%+ annual earnings growth.