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Nu Holdings' stock dropped 19% despite strong earnings, mainly due to macro challenges in Brazil, not business fundamentals. Q4 earnings showed impressive FX-neutral growth: 50% YoY revenue, 23% ARPAC, and 75% interest-earning portfolio. Management's strategic risk-taking and growth in Mexico and Colombia mitigate Brazil's macroeconomic headwinds.
I remain concerned about three consecutive quarters of NIM contraction, driven by FX headwinds, secured lending growth, and rising deposit costs in Mexico and Colombia. I believe Nu's strategic move toward secured lending and higher income customers could be an early sign of increased macroeconomic headwinds in Brazil. The stock is now near a support level, and if it breaks lower, I expect a drop to the low $8 range. However, it's too early for a sell rating.
Nu Holdings' Q4 earnings weren't favorable, causing the stock to drop by double digits and bringing a great opportunity to buy the dip. The significant depreciation of the Brazilian currency made Nu's financial growth considerably lower in US dollars, but the company continued with high growth in local currency terms. With a forward PE of 20.4x and a PEG ratio of 0.90x, Nu's valuation is now more attractive than ever, justifying a strong buy rating.
Nu Holdings reported Q4 results missing expectations, causing an 8% pre-market share drop, primarily due to significant FX impact, controlled growth, and competition. Despite short-term pressures, Nu's long-term growth potential remains strong, with a proven formula and only 4% of Latin America's TAM captured. Nu's valuation at 22x forward earnings and 0.8x PEG ratio remains highly attractive, but the near-term trajectory is murky.
Nu (NU -15.18%) stock is seeing big sell-offs in Friday's trading. The fintech company's share price was down 15.2% as of 11:30 a.m.
In this video, I will cover Nu Holdings' (NU -14.88%) recent earnings report. Watch the short video to learn more, consider subscribing, and click the special offer link below.
Nu Holdings, the digital financial services platform operating across Brazil, Mexico and Colombia, increased its customer base by 22% in 2024 to reach a total of 114.2 million. The company added 4.5 million customers in the fourth quarter and 20.4 million in the full year 2024, Nu Holdings said in a Thursday (Feb.
While the top- and bottom-line numbers for Nu (NU) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Nu Holdings Ltd. (NU) came out with quarterly earnings of $0.12 per share, in line with the Zacks Consensus Estimate.
Brazilian digital lender Nubank posted on Thursday an 87% increase in its fourth-quarter adjusted net profit from a year earlier.