Core Insights - Financial technology and digital banking are rapidly expanding in Latin America, with Nu Holdings leading the charge [1] - Despite significant growth, Nu Holdings' stock price remains close to its IPO level, presenting a potential buying opportunity ahead of its earnings report [2] Company Overview - Nu Holdings, also known as Nu Bank, launched in Brazil in 2013 and has grown to over 100 million accounts, representing over half of Brazil's population [3] - The company is projected to exceed $10 billion in annual revenue in Brazil this year, with significant upselling potential for its banking, lending, payment card, and investing products [4][5] Market Expansion - In Mexico, Nu Bank has 11 million customers and has recently obtained a banking license, allowing for full lending and banking capabilities [8] - Revenue in Mexico is currently under $700 million, but there is potential for it to grow to a $10 billion annual revenue business [9] - Nu Bank is also entering the Colombian market and plans to expand into Argentina, Chile, and Uruguay in the coming years [10] Financial Performance - Nu Holdings has achieved a return on equity (ROE) of nearly 30% over the last 12 months, indicating strong profit efficiency [12] - The company reported a net income of $2.15 billion over the past year, resulting in a trailing price-to-earnings (P/E) ratio of 30 [13] - Revenue grew by 19% year over year last quarter, with expectations for continued growth in existing and new markets [13] Investment Thesis - The combination of rapid growth, profitability, and market expansion makes Nu Holdings an attractive investment opportunity before its upcoming earnings report [14]

Market Overview - The stock market has faced significant declines due to weak economic data, tariff concerns, higher-than-expected inflation, and fears regarding AI capital expenditures, with the Nasdaq Composite down nearly 15% from its recent high [1] - Financial technology (fintech) stocks have been particularly hard hit, influenced by concerns over slower consumer spending and profit margins [2] Company Performance - Notable fintech companies have seen substantial declines: Shopify is down 26% since mid-February, Block has fallen 42% from its 2025 peak, and SoFi has decreased by 35% since January [3] Investment Opportunity - The Ark Fintech Innovation ETF is highlighted as a potential investment opportunity, especially in a turbulent market where individual stock selection can be challenging [4] - Unlike passive index funds, the Ark Fintech Innovation ETF is actively managed, aiming to outperform benchmark indices by selecting a diverse range of fintech stocks [5][6] ETF Composition - As of March 30, 2025, the top 10 holdings of the Ark Fintech Innovation ETF include: - Shopify (10.1% of assets, $125 billion market cap) - Coinbase (7.1%, $44 billion) - Robinhood (6.1%, $37 billion) - Other notable companies include Block, Palantir, and MercadoLibre, providing a mix of e-commerce, cryptocurrency, payment processing, and cybersecurity stocks [7] Market Outlook - Despite short-term cyclicality and headwinds, there is a significant long-term opportunity in the fintech sector, with the potential to acquire promising stocks at discounted prices due to recent market weaknesses [12]