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Growth - Nu Holdings generated $2.9 billion in revenue in Q3, a 38% year-over-year increase, and more than 500% higher than the same period in 2021 [2] - The company operates as a digital-only bank, offering products like checking and savings accounts, credit cards, insurance, and brokerage services, which allows it to focus on technological innovation and user experience [3] - Nu added 5.2 million net new customers in Q3, bringing its total customer base to 109.7 million, with the majority in Brazil and recent expansion into Mexico and Colombia [4] - Latin America presents significant growth potential, with 70% of the population unbanked or underbanked, positioning Nu to attract more customers and drive revenue growth [5] Profitability - Nu transitioned from a net loss of $9.1 million in 2022 to reporting positive GAAP net income in 2023, with Q3 net income increasing 83% year-over-year to $553 million, representing an 18.8% margin [6][7] - The company achieved strong unit economics, generating $11 in average revenue per active customer in Q3, a 25% year-over-year increase on a currency-neutral basis, while reducing the cost to serve the average customer to $0.80, down 4% from Q3 2023 [8] - Operating expenses as a percentage of revenue declined to 21% from 24% in Q3 2023, demonstrating operating leverage [8] Valuation - Nu's shares are trading at a forward price-to-earnings ratio of 20.3, significantly below its historical average and at a 10% discount to the S&P 500 [9] - Wall Street forecasts Nu's revenue and earnings per share to grow at compound annual rates of 30% and 38%, respectively, between 2024 and 2026, indicating strong future returns for investors [10]

Recommendation Upgrade - The analyst upgrades the recommendation on Nu Holdings (NYSE: NU) from hold to buy due to recent developments that have provided a new perspective on the investment thesis [1] Analyst Background - The analyst has more than 5 years of experience in equity analysis in Latin America, providing clients with in-depth research and insights to aid in informed investment decisions [1] Disclosure - The analyst has no stock, option, or similar derivative position in any of the companies mentioned and no plans to initiate any such positions within the next 72 hours [2] - The article expresses the analyst's own opinions and is not receiving compensation for it other than from Seeking Alpha [2] - The analyst has no business relationship with any company whose stock is mentioned in the article [2]

Company Overview - Nu Holdings (NYSE: NU) is a rapidly growing neobank operating exclusively online in Latin America [1] - The company has significant growth potential and is becoming increasingly profitable each year [1] - Despite its strong fundamentals, Nu Holdings' stock price has remained relatively stagnant since March 2024 [1] Growth Potential - Nu Holdings has a substantial runway for growth in the Latin American market [1] - The company's profitability is improving annually, indicating strong operational performance [1] Investment Perspective - Quantitative analysis suggests Nu Holdings may be undervalued based on its growth prospects [1] - The company's financial metrics are considered more important than narrative factors in assessing its investment potential [1] Analyst Background - The analysis is conducted by an experienced investor with a decade-long track record since 2013 [1] - The analyst employs quantitative methods that have been thoroughly backtested for success [1] - The investment approach is informed by extensive reading of financial literature, including works on high-growth stocks and quantitative analysis [1]

Investment Philosophy - The analyst adopts a pragmatic and rational approach to investment decisions, aligning with Warren Buffett's principle of being greedy when others are fearful [1] - The analysis is fundamentally driven, focusing on identifying undervalued stocks with growth potential [1] Analyst's Position - The analyst holds a beneficial long position in INTR and GOOGL through stock ownership, options, or other derivatives [1] - The article reflects the analyst's personal opinions and is not influenced by any compensation or business relationships with the mentioned companies [1]

Nubank’s parent company is reportedly considering moving its legal domicile to Britain before beginning a planned global expansion.Nu Holdings is currently domiciled in the Cayman Islands, Reuters reported Monday (Jan. 20).“We are actively thinking what are some of the jurisdictions that make sense for us to consider, as we think about the next 10 years of global expansion,” Nu Holdings CEO David Velez said in the report.The company’s Nubank is Latin America’s most valuable lender, one of the world’s larges ...

Company Overview - Nu Holdings is a digital bank that has disrupted the traditional banking sector in Brazil by offering innovative, low-cost banking solutions [1] - The company operates a digital-only neobank model without physical branches, significantly reducing overhead costs [3] - Nu Holdings has grown its customer base from 24 million in 2020 to nearly 99 million today, representing over 56% of Brazil's adult population [4] - The number of unbanked Brazilians has decreased from 16.3 million to 4.6 million, or about 3% of the adult population [4] Market Expansion - Nu Holdings is expanding into key Latin American markets, including Mexico and Colombia [2][5] - In Q3, the company's customer base grew to 2 million in Colombia (150% YoY growth) and 8.9 million in Mexico (106% YoY growth) [6] - 51% of Mexico's population remains unbanked, representing a significant growth opportunity for Nu Holdings [6] Financial Performance - Nu Holdings has achieved seven consecutive quarters of net income growth [7] - In Q3, the company reported $553 million in profit, an 82% YoY increase and 13.5% QoQ growth [7] - Credit card receivables growth has slowed to $15.2 billion, only slightly higher than the $14.5 billion reported at the end of 2023 [10] Credit Concerns - 90+ day delinquent non-performing loans increased to 7.2%, up from 6.1% a year earlier [9] - The company recorded $1.6 billion in write-offs, a significant increase from $957.6 million in the previous year [9] - Berkshire Hathaway reduced its position in Nu Holdings by 19%, now holding 86.4 million shares [10] Strategic Initiatives - Nu Holdings is exploring new verticals to increase its total addressable market, including NuPay, NuTravel, NuMarketplace, and NuCel (mobile phone service) [11] - The company aims to create a digital ecosystem that promotes cross-selling opportunities and reduces reliance on credit for sustained growth [12] Valuation and Growth Potential - Nu Holdings' stock has declined 29% from its 52-week high [2] - The stock is currently trading at approximately 31 times earnings and 7 times sales, down from 48 times earnings and over 10 times sales before the recent sell-off [8] - The company's rapid growth and higher valuation make it vulnerable to volatility, but it remains a solid growth stock for long-term investors [14]

Core Viewpoint - Cathie Wood and Warren Buffett, despite their contrasting investment philosophies, both hold positions in Nu Holdings, a fintech company focused on Latin and South America, which is seen as a potential breakout opportunity by 2025 [1][3]. Company Overview - Nu Holdings is a digital financial services platform offering a range of products including checking and savings accounts, investing, and loans, primarily targeting markets in Brazil, Colombia, and Mexico [4]. - As of the end of Q3, Nu had 110 million members, reflecting a 23% year-over-year growth, with an average revenue per user (ARPU) of $11 [5]. Financial Performance - Nu's gross margin increased by 300 basis points, and net income rose by 83% year-over-year to $553 million during the third quarter [6]. - The company's profitability has improved as it has made its customers more profitable over time [6]. Valuation Perspective - Nu's price-to-sales (P/S) ratio is competitive compared to other international fintech companies, indicating an attractive valuation relative to its growth [7]. - The P/S ratio has been declining recently, attributed to macroeconomic conditions in Latin America, particularly Brazil, though this is not seen as a reason to sell the stock [8]. Market Comparison - Nu is compared to SoFi, another fintech company that has faced challenges but has seen a resurgence as economic conditions improved [9][11]. - Concerns regarding inflation and economic conditions affecting Nu's growth are similar to those faced by SoFi, but long-term prospects remain strong due to rising user base and profitability [12][13].

Group 1: BigBear.ai Overview - BigBear.ai has experienced significant stock volatility since its SPAC merger, with its stock price peaking at $12.69 in April 2022 and dropping below $1 by December 2022 [1][2] - The company initially projected revenue growth from $182 million in 2021 to $388 million in 2023, but actual revenue only increased from $146 million to $155 million, attributed to macroeconomic challenges and the bankruptcy of a major customer [2] - Under new CEO Mandy Long, analysts expect revenue to grow by 8% in 2024 and 14% in 2025, reaching $192.5 million, driven by new government contracts [3] Group 2: Nu Holdings - Nu Holdings is the largest digital bank in Latin America, with customer numbers increasing from 33.3 million in 2021 to 109.7 million by Q3 2024 [5] - The activity rate of Nu's customers rose from 76% to 84% as the bank expanded its services, including checking, credit cards, and e-commerce [6] - From 2021 to 2023, Nu's revenue grew at a compound annual growth rate (CAGR) of 117%, achieving profitability in 2023, with significant growth potential as 70% of Latin America's population remains unbanked [8] Group 3: PDD Holdings - PDD Holdings is the third-largest e-commerce company in China, with revenue growing at a CAGR of 80% from 2018 to 2023, and it became profitable in 2021 [10] - The company's GAAP net income grew at a CAGR of 178% from 2021 to 2023, driven by its discount marketplace and online agricultural marketplace [11] - Analysts expect PDD's revenue and EPS to grow at a CAGR of 34% and 36% respectively from 2023 to 2026, despite current valuation pressures due to macroeconomic challenges in China [13]

Warren Buffett has been a net seller of stocks over the past eight quarters, building Berkshire Hathaway's cash reserves to its highest-ever level. He's completely exited some positions, like Floor & Decor, and trimmed down positions in others, like Apple. Apple still accounts for the largest position in the equity portfolio, and Buffett recently said that he would never sell it completely. Selling some of its stock doesn't look like a loss of confidence in the company.Is it the same situation with Nu Holdi ...