StoneCo Ltd. (NASDAQ: STNE) shares are tumbling 7.31% in pre-market trading on Friday, extending the previous session's 7.26% decline. This sharp downturn comes in the wake of the Brazilian fintech company's third-quarter earnings report and amidst a broader selloff in technology and growth stocks.

StoneCo reported third-quarter results that largely met analyst expectations. The company posted an adjusted net profit of 641 million reais, slightly above the IBES estimate of 639 million reais, while recurring revenue hit 3.6 billion reais, exactly in line with projections. Despite these seemingly positive figures, investors appear to be reacting negatively, possibly due to concerns about future growth prospects or disappointment that the results didn't significantly exceed expectations.

The continued decline in StoneCo's stock price also reflects the overall risk-off sentiment currently dominating the markets. Major U.S. indices experienced significant drops in the previous session, with technology and high-growth stocks particularly hard hit. This broader market context is likely exacerbating the downward pressure on StoneCo's shares, as fintech companies often fall into the category of growth stocks that are more sensitive to market volatility and changing investor sentiment.