Nu Holdings continues rapid growth in Latin America, expanding in Mexico and Colombia and pushing into Africa and Asia for global reach. AI-driven innovation and strong partnerships enhance user experience and operational efficiency, supporting NU's leadership in digital financial services. Despite high valuation multiples, robust revenue growth, strong margins, and healthy cash generation justify maintaining a 'Buy' recommendation for medium/long-term investors.
Nu Holdings Ltd. (NU) closed at $13.49 in the latest trading session, marking a -1.1% move from the prior day.
Nu Holdings' rising ARPAC reveals how low-cost service and deepening customer ties are fueling scalable, sticky growth.
Nu Holdings - the parent company of Nubank - sports incredible growth and profitability, and a considerable market opportunity. The company's loan portfolio has become more robust, powering unbelievable unit economics and ARPAC. Trading at only 30x income, we think NU shares look cheap, and the stock could be getting ready for another leg higher.
American investors might not be too familiar with Nu Holdings (NU -1.34%). True, it's a large-cap company with a $65 billion market capitalization currently.
I reiterate my buy recommendation for Nu Holdings, seeing over 30% upside and strong prospects for international expansion, despite recent executive turnover. Berkshire Hathaway's exit and management changes have spooked investors, but I believe these moves will increase agility and efficiency, especially with Roberto Campos Neto joining. Nu's proven growth model in Brazil is now being replicated in Mexico, with a new full-service banking license as a key catalyst for future results.
I invested in Nu Holdings for its rare, profitable, and rapidly scaling fintech platform outside the U.S., offering much-needed portfolio diversification. Nu Holdings boasts 118 million customers, 83%+ activity rate, 40%+ revenue growth, and 62%+ income growth, with industry-leading efficiency and profitability. Risks include heavy Brazil exposure, rapid loan growth in emerging markets, competition, and a premium valuation that could compress if growth slows.
Nu Holdings Ltd. remains a long-term buy, but recent gains have compressed the margin of safety, warranting a more cautious approach at current prices. Growth opportunities persist through untapped segments like investments, insurance, and international expansion, supporting the bullish thesis beyond the core business. Key risks include potential ROE compression, macroeconomic volatility in LatAm, and increasing competition from both traditional and digital banks.
Nu Holdings is poised for renewed hyper-growth, with revenue acceleration above 30% expected as the Brazilian Real recovers and internal execution improves. Amid recent management changes and competitive pressures, Nu's long-term prospects remain massive, with significant untapped market potential and unparalleled operational efficiency. Currency fluctuations remain a key risk, but current valuation is attractive—trading below 1x PEG and 25 times earnings, with strong earnings and revenue growth trajectory.
Nu (NU) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
In the latest trading session, Nu Holdings Ltd. (NU) closed at $12.34, marking a +1.65% move from the previous day.
NU's Mexico expansion shows slower growth than Brazil, as rivals brace for impact and regulatory shifts reshape the playing field.