Should You Buy, Sell, or Hold Nu Holdings Now That Its Earnings Are Out?
Key Points
Nu Holdings continues to grow its revenue and customers rapidly.
Growth continues without sacrificing credit cost or quality.
- 10 stocks we like better than Nu Holdings ›
Nu Holdings (NYSE: NU) has been an incredible long-term success story. Founded in 2013, the online-only bank now has nearly 140 million customers across just three countries: Brazil, Colombia, and Mexico. Year-over-year revenue growth has consistently been in the double digits, sometimes exceeding 100%.
Some analysts worry that the fintech's biggest days of growth are behind it. After all, the competition is catching on to Nu's asset-light business model. But a few key figures from the company's recent quarterly earnings announcement suggest that the fintech stock remains a long-term buy.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
1 Reason Nu Holdings stock remains my top fintech stock
As I detailed earlier this month, Nu is facing increased competition, but its competitive advantages continue to give it a durable edge. In recent years, competing banks have acquired more customers, but at the expense of declining credit quality and rising deposit costs. Meanwhile, Nu has been able to maintain high revenue and customer growth without sacrificing borrower quality or net interest margins.
Image source: Getty Images
This quarter, the company posted a consolidated cost of deposits of 88% the interbank rate, three percentage points lower than a year ago. Its efficiency ratio (a measure of how well the bank is managing operating costs) and asset quality metrics also improved.
In total, investors are seeing no indication that Nu's competitive advantages are waning. In fact, investors should come away with greater confidence in the durability of Nu's business model, as many of its key metrics continued to improve despite intensifying competitive headwinds.
Trading at less than 20 times earnings despite a durable business model and rapid revenue and profit expansion continues to make Nu stock my top fintech stock on the market today.
Should you buy stock in Nu Holdings right now?
Before you buy stock in Nu Holdings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nu Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,883!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of August 23, 2026.
Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nu Holdings. The Motley Fool has a disclosure policy.
Recommended Articles
