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Nu Holdings (NU -18.89%) investors ended this past trading week on a downtick. The fast-growing Brazilian fintech stock plummeted 19% on Friday after the company posted a disappointing financial update.
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 dr...
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 mo...
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, ...
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.
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