Shares of Pagseguro Digital Ltd. (PAGS) plummeted 5.04% during intraday trading on Wednesday, following the release of the company's third-quarter financial results. The sharp decline came as the Brazilian fintech firm reported earnings that fell just short of analyst expectations.

Pagbank, Pagseguro's digital banking platform, announced a recurring net profit of 571 million reais for the third quarter. While this figure represents a solid performance, it narrowly missed the consensus estimate of 574 million reais, as reported by IBES. The slight underperformance appears to have triggered a significant selloff in the stock, highlighting the market's sensitivity to even minor earnings misses.

The negative reaction to Pagseguro's earnings report underscores the high expectations investors have placed on the company, which operates in the competitive and fast-growing fintech sector in Brazil. As the market digests this information, it remains to be seen whether the stock will recover in the near term or if this miss will have longer-lasting implications for investor sentiment towards PAGS.