Why's Everyone Talking About Nu Holdings Stock?

Core Insights - Nu Holdings (Nubank) is emerging as a standout in the fintech sector, with a significant customer base of over 120 million across Brazil, Mexico, and Colombia, making it the world's largest digital banking platform [1][3] - The company's stock has increased by 46% year to date, reflecting strong investor optimism [1] Business Model - Nubank operates entirely digitally, allowing customers to open accounts and apply for credit quickly via their phones, eliminating the need for physical branches [3][4] - The cost to serve a customer is under $1 per month, enabling Nubank to offer competitive fees while remaining profitable [4] - In Q2 2025, Nubank reported revenues of $3.7 billion and net income of $637 million, achieving a 28% return on equity, surpassing many traditional banks [4][5] Market Opportunity - Latin America is one of the most underbanked regions globally, with millions lacking access to basic banking services [8] - Nubank's model of free accounts and transparent pricing addresses these issues, expanding the market and creating significant growth potential [9] - The company not only captures market share but also brings new users into the banking system, indicating a long runway for future growth [6][9]