07 Jan 2026 13:39:40 ET │ 23 pages E s s e n t i a l s | Global Theme Machine Valuation weighs on AI theme rankings but they're still attractive CITI'S TAKE Using the Citi Global Theme Machine, we analyse the dynamic attractiveness of 93 global themes mapped across nearly 5,000 listed companies by 200+ Citi Fundamental Analysts. As we do each year, we will be starting our annual theme review and stock remapping in order to update the model – publication is likely to be in February 2026. This is the current ...

Nu Holdings Ltd. (NYSE:NU) ranks among the best stocks under $25 to buy now. On December 18, Goldman Sachs restated its Buy rating on Nu Holdings Ltd. (NYSE:NU) with a $21 price target, calling it one of its “best ideas” and stressing the digital bank’s solid growth prospects for the upcoming year. The firm anticipates Nu Holdings Ltd. (NYSE:NU) to have another stellar run, with analyst consensus forecasts already up 8% since the company’s Q3 2025 results. Nu Holdings Ltd. (NYSE:NU) also added 4.3 millio ...

Industry Overview - The mobile payments market is experiencing rapid growth due to the shift from cash to digital transactions, driven by convenience and security [1][2] - Increased internet penetration and smartphone usage are contributing to the adoption of digital payments, transforming everyday transactions [2] - Industry players are diversifying contactless payment options, including mobile wallets, biometrics, and QR codes, to solidify their market presence and diversify income streams [3] Company Insights Mastercard Inc. (MA) - Mastercard's acquisitions are expanding its addressable markets and driving new revenue streams, with expected net revenue growth of 16% year-over-year in 2025 [7] - The company is leveraging AI technologies across various operations, enhancing security and customer experiences [8] - Mastercard has an expected revenue growth rate of 15.1% and earnings growth rate of 11.8% for the current year [10] Visa Inc. (V) - Visa's strong market position is supported by consistent volume-driven growth, acquisitions, and technological leadership in digital payments [11] - The company has invested $3.5 billion in rebuilding its data platform, which helps prevent $40 billion in fraud attempts annually [14] - Visa has an expected revenue growth rate of 10.8% and earnings growth rate of 12.3% for the current year [14] PayPal Holdings Inc. (PYPL) - PayPal is experiencing robust growth in total payment volume, with strengthening customer engagement and improving monetization efforts on its platform [15][16] - The company is leveraging AI to enhance fraud detection and operational efficiency [17] - PayPal has an expected revenue growth rate of 4% and earnings growth rate of 12.5% for the current year [17] Capital One Financial Corp. (COF) - Capital One's growth is driven by opportunistic acquisitions, including Discover Financial, reshaping its credit card business [18] - The company expects net interest income to rise 31.5% in 2025, supported by solid credit card and online banking operations [19] - Capital One has an expected revenue growth rate of 34.4% and earnings growth rate of 21.9% for the current year [20] Green Dot Corp. (GDOT) - Green Dot operates as a pro-consumer bank holding company, offering products and services through a national distribution platform [21] - The company has three reportable segments: Consumer Services, B2B Services, and Money Movement Services, with revenues derived from various transaction-based services [22] - Green Dot has an expected revenue growth rate of 20.3% and earnings growth rate of -1.5% for the current year [23]

Core Insights - Nu Holdings Ltd. (NYSE:NU) is recognized as one of the 10 Best Mobile Payments Stocks to Buy Now, showcasing strong financial performance in Q2 2025 with a net income of $637 million, reflecting a 42% year-over-year increase on an FX-neutral basis, and revenues rising 40% to $3.7 billion due to customer growth and engagement [1][2] Financial Performance - The company reported an activity rate of 83.2% in Q2, adding 4.1 million new clients, bringing the total to 122.7 million [2] - Monthly revenue per active user increased by 18% year-over-year to $12.2, while the cost of serving remained stable at $0.80 [2] - Gross profit rose 24% year-over-year to $1.55 billion, and deposits surged 41% year-over-year to $36.6 billion, with margins improving to 42.2% [2] Market Presence - In Brazil, Nu Holdings has 107.3 million consumers, representing over 60% of the adult population, while Mexico has 12 million consumers and Colombia has 3.4 million [3] - Deposits in Colombia increased significantly by 841% year-over-year to $2.1 billion [3]

Group 1 - Mastercard Incorporated (NYSE:MA) is recognized as one of the top mobile payments stocks to invest in, attributed to its strong market position and competitive advantages [1][2] - The company benefits from a wide moat in the global electronic payment infrastructure, making it resilient to market changes and competition [1][2] - The transition to electronic payments presents significant growth opportunities, particularly in developing markets, which could further enhance Mastercard's value proposition [2][3] Group 2 - Mastercard operates like a tollbooth, generating revenue through transaction fees regardless of the payment method used, which provides stability against market fluctuations [3]