Core Viewpoint - Nu Holdings Ltd. (NU) has experienced a significant stock decline of nearly 27% over the past six months, contrasting sharply with the 6% growth in the industry [1] Company Performance - NU's performance is notably weaker compared to peers, with Banco Santander (Brasil) S.A. (BSBR) declining approximately 11% during the same period, while SoFi Technologies (SOFI) surged over 26% [2][3] - The company has a diversified revenue model that includes lending, interchange fees, and marketplace services, which helps mitigate risks and provides stability during economic uncertainties [6] - In the fourth quarter, NU reported a 24% year-over-year revenue increase, indicating robust financial performance [8] Customer Growth and Market Position - NU has added 4.5 million customers in the fourth quarter of 2024, bringing its global customer count to 114.2 million, driven by its digital-first strategy [5] - The company is expanding its operations across Latin America, particularly in Mexico and Colombia, where adoption is accelerating [5] Financial Metrics - NU's trailing 12-month Return on Equity (ROE) is 30.4%, significantly higher than the industry average of 11.1% [9] - The trailing 12-month Return on Invested Capital (ROIC) stands at 12.5%, well above the industry average of 3% [11] Earnings and Sales Growth - The Zacks Consensus Estimate for NU's 2025 earnings is 54 cents, indicating a 20% growth from the previous year, with expected earnings growth of 45.7% in 2026 [13] - Sales are projected to grow by 33.7% and 26.3% year-over-year in 2025 and 2026, respectively [13] Valuation Concerns - NU stock is currently trading at 17.77 times forward earnings, more than double the sector's average of 8.58 times, reflecting market optimism about its growth potential [14] - The high valuation introduces risks, as any earnings shortfall or slower growth could lead to a sharp correction [14] Investment Outlook - While NU's innovative fintech model and strong financial performance justify its valuation, the current price levels may limit near-term upside potential [15] - Existing investors may consider holding positions for long-term growth, while new investors might wait for a pullback before entering [15]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Cathie Wood and Warren Buffett could not be more different in their investing style, but they have one thing in common: Nubank (NYSE: NU )The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn moreJames Foord is an economist by trade and has bee ...

Nu Holdings ( NU ) is capitalizing on the LatAm banking by blending scale, speed, and simplicity through a digital-first model. With 114 million clients across Brazil, Mexico, and Colombia, the company’s growth is nothing short of explosive, backed by a rising deposit base, strong engagement, andYiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Edu ...

This is a rapidly growing company. It has found remarkable success catering to a part of the world that has a big underbanked and unbanked population. Nu's focus on using technology to better serve customers has been a winning strategy. Revenue grew 1,782% from $612 million in 2019 to $11.5 billion in 2024. This was supported by a customer base that expanded nearly six-fold during that time. More than half of adults in Brazil are Nu customers. Colombia and Mexico, while newer markets, also have huge potenti ...

Group 1 - Nu Holdings is a rapidly growing digital banking platform with significant customer acquisition momentum and improving platform metrics [1] - The company is expanding quickly in its core markets, which include Brazil, Mexico, and Colombia [1] - The headquarters of Nu Holdings is located in Brazil [1]

Group 1: Strategy (MSTR) - Strategy, formerly known as MicroStrategy, has a current market cap of $75 billion, up from $3 billion two years ago [1] - The company's revenue from its core analytics software business was only $121 million last quarter, indicating stagnation [2] - Strategy has accumulated 506,137 Bitcoins at an aggregate purchase price of $33.7 billion, with the current value of this hoard at $44.1 billion, making it the largest corporate holder of Bitcoin [4][2] - The company is pursuing a "21/21" plan to raise $42 billion through equity and fixed-income securities to buy more Bitcoin, which may dilute existing investors and increase debt [4][5] Group 2: Nu Holdings (NU) - Nu is the largest online bank in Latin America, with a customer base that grew from 33.3 million in 2021 to 114.2 million by the end of 2024, and an activity rate increase from 76% to 83% [6][8] - The company's rapid growth is attributed to its digital-only model and increasing internet penetration, with over 70% of Latin America's adult population still unbanked [7][8] - Analysts project Nu's revenue and EPS to grow at compound annual rates of 32% and 40% respectively from 2024 to 2027, with a current market cap of $53 billion [9] - If Nu meets analysts' expectations and trades at 5 times forward sales, its market cap could reach $131.5 billion, and at 10 times forward sales, it could be worth $263 billion [10] Group 3: Coupang (CPNG) - Coupang, South Korea's largest e-commerce platform, increased its customer base from 14.9 million in 2020 to 22.8 million by the end of 2024 [11] - The company has built a robust fulfillment infrastructure, with 70% of South Korea's population living within seven miles of a fulfillment center, and has over 14 million subscribers to its Rocket Wow service [12] - Analysts expect Coupang's revenue to grow at a compound annual rate of 14%, with adjusted EBITDA rising at 54%, while its current market cap is $42.6 billion [14] - If Coupang overcomes economic challenges and achieves a valuation of 3 times forward sales, its market cap could surge to $133.8 billion by early 2027 [14]

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to end Q1, consider joining Out Fox The Street .Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NU over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not rece ...

Despite having a market cap of more than $50 billion, Nu Holdings (NU -4.17%) might not be a familiar business to many investors in the U.S. That's because its operations are in Brazil, Mexico, and Colombia.The company's shares have been volatile since their initial public offering in December 2021. However, they have soared 180% in the past 24 months. This is true even though there's been a 26% drop since November. Nu trades for less than $12 a share. Does this make the fintech stock a smart buying opportu ...

Warren Buffett often talks about the role of luck, about being born in the United States, and also his famous quote “Don't bet against America”. I'm mentioning this because being a long-term investor in US stocks is different fromEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or t ...