NU's Mexico expansion shows slower growth than Brazil, as rivals brace for impact and regulatory shifts reshape the playing field.
NU's user base, revenues and returns are soaring. However, a steep valuation and Latin American risks cloud the near-term outlook.
NU's explosive first-quarter customer growth and strong monetization show that it is scaling fintech with discipline and speed.
Nu (NU) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Nubank's digital-first, asset-light model and scale give it a structural cost and efficiency advantage over traditional Latin American banks, justifying its premium valuation (operational efficiency of 26.7% vs +40%). NU trades at a trailing P/E of 29x vs. Latam banks in the ranks of 8x-12x. Superior CAGR in future earnings justifies this valuation. Despite higher NPLs, Nubank's risk-adjusted margins and operational leverage support sustained earnings growth, with regulatory barriers reinforcing its competitive moat.
Nu Holdings delivered exceptional growth in Q1 2025, with strong revenue, profitability, and customer acquisition across Brazil, Mexico, and Colombia. Concerns about slower revenue growth and margin compression are overblown if you know the context and facts behind the numbers. Nu's operating leverage, efficiency, and management execution are world-class, making every dip a long-term buying opportunity for patient investors.
Nu Holdings added 4.3 million customers in Q1 2025, pushing the fintech's user base to 118.6 million throughout Latin America. Mixed quarterly earnings have been attributed to Nubank's regional expansion strategy, focusing on LATAM's 667 million population. The arrival of NuPay and Nu Travel shows a company focused on broadening its repertoire of fintech services.
Nu Holdings delivered strong Q1 results last week, maintaining rapid customer growth and improving monetization, especially in core markets like Brazil. The fintech added 19M new customers in the last year, reaching 119M total customers by the end of Q1. Deposits in Brazil are surging, and so are the fintechs' overall gross profits.
Given the recent decline in NU shares, we evaluate the stock's current position to determine whether this presents a good investment opportunity.
Nu (NU) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Nu Holdings is growing fast, with strong fundamentals, but its stock price seems overvalued at the moment. Q1 2025 results were solid, with revenue growth and client expansion, but some small concerns on defaults and ROE sustainability linger. Nu's low-cost digital model is a key strength, allowing it to scale rapidly with minimal overhead compared to traditional banks.
Nu Holdings (better known as Nubank), just released its first quarter earnings. The release beat on revenue but missed on EPS. Overall, the release was quite good in my view, but markets punished the stock for the small miss.