Should You Buy Nu Holdings Stock While It's Below $18?

Core Insights - Nu Holdings is rapidly growing in the Latin American banking sector, with over 100 million customers, surpassing all U.S. banks by customer count [1][3] - The company has seen significant financial growth, with net income increasing from breakeven to $2.5 billion in three years [5] - Nu Holdings is expanding its market presence, with plans to enter new countries and apply for a banking license in the U.S. [7][8] Customer Growth and Financial Performance - Nu Holdings has 110 million customers in Brazil and 13 million in Mexico, with the latter experiencing exponential growth [3] - Average revenue per active customer in Mexico has risen to $12.50 from $5.20 in 2021, while the cost per customer has decreased from $3 to $1 [4] - The company's market cap is currently $81 billion, with a price-to-earnings ratio of 32.4 based on trailing net income [11] Market Expansion Potential - Nu Holdings operates in Brazil, Mexico, and Colombia, but has opportunities to expand into other Latin American markets, with a total regional population exceeding 600 million [6][8] - Management has indicated potential entry into markets such as Chile, Argentina, or Peru, which could further enhance growth [7] - The company is expected to layer additional financial services, such as credit cards, to increase revenue streams [12] Long-term Outlook - Analysts suggest that Nu Holdings could generate $10 billion in annual net income within five years, leading to a significantly lower P/E ratio of 8 based on current stock price [13] - Despite a nearly 50% rise in stock price over the past year, shares are still considered attractive for long-term investors at $18 or below [13]