Could Buying Nu Holdings Stock Today Set You Up for Life?

Core Business and Growth Potential - Nu Holdings is a digital bank operating in Brazil, Mexico, and Colombia, with a significant opportunity in the Latin American banking sector where many individuals lack basic banking services [3] - The company serves approximately 58% of adults in Brazil and aims to reach a total of 114.2 million customers by the end of 2024 [3][4] - Customer base grew by 22% last year, surpassing 100 million in Brazil and 10 million in Mexico, indicating successful expansion into new markets [4] Revenue Growth - Nu's total revenue surged from $1.7 billion in 2021 to$11.5 billion last year, showcasing explosive growth driven by new customer acquisition and increased usage of services by existing customers [5] - The company has a high long-term growth potential if the current momentum continues [5] Customer Experience and Innovation - Nu emphasizes customer experience, achieving a Net Promoter Score of 84 among high-income customers, which is crucial for a bank in emerging markets [6] - The company is leveraging its digital footprint to explore new services such as e-commerce, travel planning, mobile phone service, and digital payments [7][9] Profitability and Valuation - Nu is profitable, with diluted earnings per share of $0.40 last year, expected to rise to$0.78 by 2026, indicating strong earnings growth alongside revenue [10] - The stock trades at about 27 times last year's earnings, presenting a potentially attractive valuation for long-term investors [12] Market Position and Future Outlook - While replicating Amazon's returns may be challenging due to Nu's current $50 billion market cap, the company's cheap valuation and high growth potential could lead to market-beating returns in the future [13][14]