Why Warren Buffett Stock Nu Holdings Was Cruising Higher on Monday

After publishing its latest set of quarterly earnings Tuesday post-market close, Nu Holdings (NYSE: NU) was a popular title on the stock exchange. The Brazil-based fintech's shares ticked higher Wednesday, closing with a nearly 3% gain. That made the stock look good, considering that the S&P 500 (SNPINDEX: ^GSPC) only inched up by 0.1%.

A convincing revenue beat

In its first quarter of this year, Nu Holdings' revenue came in at nearly $3.25 billion, well up from the $2.74 billion it collected in the same period of 2024. Net income under generally accepted accounting principles (GAAP) standards also saw a healthy rise, advancing to over $557 million ($0.12 per share) from the year-ago profit of just under $379 million.

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On average, analysts tracking Nu Holdings' stock were expecting only $2.64 billion for revenue, although that per-share earnings figure was essentially in line with estimates.

Those encouraging growth numbers were due in no small part to a 62% increase in the company's interest-earning portfolio, and to a rise in the customer count. The latter stood at nearly 119 million clients at the end of the quarter.

The right businesses, in the right place

Nu Holdings quickly shot to prominence at the end of 2021, when celebrated investor Warren Buffett's Berkshire Hathaway bought a chunk of its stock. Berkshire has since cooled on the company, selling much of its stake, but still retains a clutch of shares.

I think that's justified. The company has developed a blend of products and services that are clearly resonating with customers in its native country and in its other Latin American operations. It also has numerous avenues for continued growth, given the vastness of its addressable market.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.