Nu Holdings Ltd.·Financial Services

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Nu Holdings Ltd. delivered Q1 results exceeding my expectations, with revenue up 57.6% and net income up 56.4% YoY. Despite strong results, NU shares dropped 8% on concerns over rising NPLs, increased cost to serve, and fluctuating Mexico deposits. I view these concerns as largely seasonal or strategic, with management proactively addressing credit risk and funding optimization.

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Nu Holdings is down to $12.69 following Q1 2026 results. My updated base case points to a meaningful upside by 2026. I remain focused on NU's scale, efficiency, and long-term potential despite the recent earnings miss.
Nu Holdings Ltd. operates as a digital financial services platform and technology company primarily in Brazil, Mexico, and Colombia. It offers Nu credit and debit cards; Ultraviolet credit and debit cards; and mobile payment solutions for NuAccount customers to make and receive transfers, pay bills, and make everyday purchases through their mobile phones. The company provides savings solutions, such as Nu Personal Accounts, a digital account solution that supports all personal finance activities, from daily purchases and money transfers to savings; and Nu business accounts designed specifically for entrepreneur customers and their businesses. In addition, it offers NuInvest, an investment product that provides equity, fixed-income, options, and ETF products, as well as multimarket funds with curated asset allocations based on the customer's risk profile and financial position; personal unsecured loans; in-app buy now pay later' solution for Nu card customers to pay credit and debit purchases, and banking payment slips over time in up to twelve installments; and NuInsurance protecting solutions to help its customers secure life insurance and funeral benefits. The company was founded in 2013 and is headquartered in Sao Paulo, Brazil.
Financial Services
Banks - Diversified
5,403
2021-12-09
1.01