Nu .(US:NU) The Motley Fool·2025-03-12 11:43Core Viewpoint - The proposed Trump tariffs have created uncertainty in the market, leading to a decline in stock prices, but investors can consider international opportunities like Nu Holdings to mitigate these risks [1][11]. Company Overview - Nu Holdings, the parent company of NuBank, is the largest digital bank outside Asia, having started in Brazil in 2013 and expanded to Mexico and Colombia [3][4]. - The bank has a competitive advantage by not maintaining physical branches, allowing it to serve a previously underserved market in Latin America [4]. Market Impact - NuBank has significantly increased financial inclusion, with nearly 21 million customers in Brazil receiving their first credit card, and 58% of the adult population in Brazil holding at least one account with the bank [5][6]. - The bank expanded to Mexico and Colombia in 2020, where 46% of active customers in Mexico and 30% in Colombia had not received a credit card prior to becoming NuBank customers [6]. Financial Performance - In 2024, Nu Holdings reported $11.5 billion in revenue, a 43% increase from the previous year, driven by the addition of 20 million customers, bringing the total to over 114 million [8]. - The net income for 2024 was just under $2.0 billion, a 91% increase from 2023, with the net profit margin rising from 13% to 17% [9]. Growth Projections - Although rapid growth is expected to slow, with analysts forecasting a 29% revenue growth for 2025, the current valuation metrics suggest the stock is attractive despite the political turmoil in Brazil [10][12]. Investment Considerations - The 34% decline in Nu Holdings' stock price may attract investor interest, as its rapid revenue growth and customer acquisition position it well for future success [12].