We met Nu Holdings Ltd. (NU) bullish papers on Tynads' Value Investment Subreddit page. In this article, we will summarize the Bulls' paper on NU. NU Holdings Ltd. (NU) shares traded at $12.45 as of May 2ND. According to Yahoo Finance, NU's backward and forward P/E are 30.86 and 22.03, respectively.
Close-up of busy executives striking the screen of digital device, indicating the development of digital retail banking solutions.
Nubank (NU) is not only a standout for digital banks, but also a disciplined and scalable fintech platform in one of the most promising regions in global finance. Building a strong customer base of over 90 million users in Brazil, whose customers are only $5, the company now sees over 60% of active customers using a variety of products, highlighting its deepening customer engagement. However, this story is increasingly telling things outside of Brazil. In Mexico, NU has become the leading new credit card issuer, and in Colombia, the early indicators point to the trajectory similar to its success in Brazil. These markets are dominated by traditional banks, and NU's digital-first model and superior customer satisfaction (90+ NP) have important competitive advantages. While the company is also preparing for infrastructure that eventually enters Europe and the United States, it is still subject to disciplinary action to expand only if the product market is appropriate. Financially, Nubank has turned profitability into profitability, reporting $2.4 billion in 2024 revenue (up 57% year-on-year), net income of $360 million and profit margin of 15%, while GAAP profitability has been in a row for four consecutive quarters. Return on equity is up in the middle of the year and supported by strong unit economics and increased operating leverage. NU has over 60% of its customers that frequently occur monthly revenue, so it is building a sticky, high-profit business. Founder and CEO David Vélez retained a huge stake and received only a symbolic salary, which has proven to be a rare operator, avoiding the surplus of many typical VCs supporting fintech. Nevertheless, the market is still paying attention to NU as if it was an early gambling. But the model has been proven that its expansion in Latin America is more replicated than speculation. As Buffett's participation adds further verification, NU provides asymmetric upward space with long-term compound potential.
NU Holdings Ltd. (NU) is not on our list The 30 Most Popular Stocks in Hedge Funds. According to our database, at the end of the fourth quarter, 79 hedge fund portfolios held NU in the last quarter. Although we acknowledge the risks and potential of NU as an investment, our belief lies in the belief that certain AI stocks have greater hope and provide higher returns in a shorter time frame. If you are looking for AI stocks that are more promising than NU but have less than 5 times its revenue, check out our report Cheapest AI stocks.