Why Nu Holdings Stock Jumped 61.6% In 2025
Key Points
Nu Holdings' stock is growing quickly in Mexico after dominating the Brazilian market.
The company is generating substantial profits, demonstrating that its digital-first banking model is effective.
Shares of the stock appear expensive, but earnings are expected to continue growing at a rapid pace.
- 10 stocks we like better than Nu Holdings ›
Shares of Nu Holdings (NYSE: NU) exploded 61.6% higher in 2025, according to data from S&P Global Market Intelligence. The digital banking giant that operates in Brazil, Mexico, and Colombia is growing quickly and seeing a profit inflection as it gains more traction in these three nations. Investors are beginning to pick up on this impressive growth, with the stock now trading near an all-time high.
But is it a buy still today? Here's why Nu Holdings -- otherwise known as Nu Bank -- soared in 2025.
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Strong growth, expansion into Mexico
Nu Bank has gained wide adoption in its home country of Brazil because of its low fees, easy-to-use mobile app, and innovative lending solutions for the wide spread of wealthier and poorer citizens in the country of over 200 million people. Over half of the adult population in the country is using a Nu Bank product.
Now, the brand is moving to Mexico and Colombia. Mexico has gone from a standing start a few years ago to 13 million customers as of the company's latest update, with growing levels of revenue per user. At the same time, it is growing aggressively in Colombia, where it already reaches 10% of the population. Over the long term, the company has ample opportunities to enter new Latin American markets as a banking partner.
Despite its massive investments to grow, Nu Holdings is showing strong profit potential. Net income over the last twelve months was $2.5 billion, up from a negative figure a few years back. Once the business begins to mature, this level of profitability should grow to an even higher level. It is the beauty of its digital-first model, giving it lower operating expenses than the rest of the competition in Latin America.
Image source: Getty Images.
Time to buy Nu Holdings stock?
After rising over 60% last year, Nu Holdings stock now trades at a market cap of $80 billion, making it one of the largest companies in the world, not just in Latin America.
With $2.5 billion in trailing net income, the stock now trades at a price-to-earnings ratio (P/E) of approximately 32. This is a premium earnings ratio compared to other banking stocks. However, Nu Bank is adding new customers at a fast rate and will hopefully enter new Latin American countries shortly. Earnings should be able to grow quickly in the years to come, which will bring down this P/E ratio to a more normal level.
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Brett Schafer has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
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