DLocal Shares Soar 23.45% on Record Q1 Earnings

DLocal (DLO) shares surged 23.45% intraday, reaching their highest level since February 2025, marking a seventh consecutive day of gains and a 27.87% increase over the past week.

The strategy of buying DLO shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.56% annualized gain. This result indicates the effectiveness of the strategy in capturing short-term price movements, although the returns are modest and suggest that the market may not always cooperate.

DLocal's impressive Q1 2025 financial results have been a significant driver of its recent stock price movement. The company reported record highs in key financial metrics, with Total Payment Volume (TPV) reaching US$8.1 billion, a 53% increase year-over-year, and revenue hitting a record US$216.8 million, marking an 18% increase compared to the same quarter last year. This robust performance included strong net income growth of 163% year-over-year, free cash flow growth of 200%, and a decrease in effective income tax rate. The financial results were released on May 14, 2025, contributing to positive market sentiment.

Following the release of its Q1 financial results, DLocal's stock soared in extended trading, driven by the company's revenue surpassing estimates and the announcement of a significant dividend. The surge in stock price reflects investor confidence in DLocal's growth trajectory and financial health.

Analysts have also taken note of DLocal's strong performance. Susquehanna raised its price target for DLocal from $16 to $18, maintaining a Positive rating on the stock. This adjustment was influenced by the strong quarterly results, further boosting investor optimism and contributing to the stock's positive momentum.