Why Nu Stock Is Plummeting Today

Core Insights - Nu's stock experienced significant sell-offs, dropping 15.2% during trading after the release of its fourth-quarter results, which met earnings expectations but missed revenue targets [1][2] - The company reported non-GAAP earnings of $0.12 per share on revenue of $2.99 billion, falling short of the $3.17 billion expected by analysts [2] - Year-over-year revenue growth was 24.6%, and the customer base increased by 22% to 114.2 million, indicating strong growth despite the sales miss [3] Financial Performance - Non-GAAP earnings were $0.12 per share, aligning with analyst estimates, while revenue was $2.99 billion, below the expected $3.17 billion [2] - Purchase volume increased to $32.2 billion from $30.9 billion in the previous quarter, indicating strong demand, yet revenue did not meet expectations, suggesting potential pricing power issues [3] Future Outlook - CEO David Vélez indicated that 2025 will be a significant investment year, focusing on expanding infrastructure and customer base, which may impact short-term profitability [4] - The company is prioritizing rapid service adoption in Brazil, Mexico, and Colombia, which could affect near-term profitability but supports long-term growth [5] - The Q4 report showed strong performance in many respects, and the current sell-off may present a buying opportunity for long-term investors [5]