Group 1 - Nu Holdings has demonstrated exceptional growth, doubling its net income to $1.97 billion in 2024 while maintaining strong operating margins and a return on equity (ROE) [1] Group 2 - The operational structure of Nu Holdings is characterized as highly efficient and profitable, contributing to its impressive financial performance [1]

Investors who allocate capital to the financial services space will likely be familiar with industry heavyweights such as JPMorgan Chase, Bank of America, Visa, Mastercard, and Charles Schwab. I'm sure younger and digitally native companies such as Robinhood Markets and SoFi Technologies come to mind as well.However, you might not know about Nu Holdings (NU 4.43%), a fintech enterprise that's making a splash in Latin America. It has already grown into a sizable business, with a market cap of $55 billion. An ...

Core Business and Growth Potential - Nu Holdings is a digital bank operating in Brazil, Mexico, and Colombia, with a significant opportunity in the Latin American banking sector where many individuals lack basic banking services [3] - The company serves approximately 58% of adults in Brazil and aims to reach a total of 114.2 million customers by the end of 2024 [3][4] - Customer base grew by 22% last year, surpassing 100 million in Brazil and 10 million in Mexico, indicating successful expansion into new markets [4] Revenue Growth - Nu's total revenue surged from $1.7 billion in 2021 to $11.5 billion last year, showcasing explosive growth driven by new customer acquisition and increased usage of services by existing customers [5] - The company has a high long-term growth potential if the current momentum continues [5] Customer Experience and Innovation - Nu emphasizes customer experience, achieving a Net Promoter Score of 84 among high-income customers, which is crucial for a bank in emerging markets [6] - The company is leveraging its digital footprint to explore new services such as e-commerce, travel planning, mobile phone service, and digital payments [7][9] Profitability and Valuation - Nu is profitable, with diluted earnings per share of $0.40 last year, expected to rise to $0.78 by 2026, indicating strong earnings growth alongside revenue [10] - The stock trades at about 27 times last year's earnings, presenting a potentially attractive valuation for long-term investors [12] Market Position and Future Outlook - While replicating Amazon's returns may be challenging due to Nu's current $50 billion market cap, the company's cheap valuation and high growth potential could lead to market-beating returns in the future [13][14]

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of April, 2025 Commission File Number 001-41129 Nu Holdings Ltd. (Exact name of registrant as specified in its charter) Nu Holdings Ltd. (Translation of Registrant's name into English) Campbells Corporate Services Limited, Floor 4, Willow House, Cricket Square, KY1-9010 Grand Cayman, Cayman Islands +1 345 949 2648 (Address ...

Customer Growth and Market Expansion - Approximately 80-90% of new customers were acquired organically each year since inception, primarily through word-of-mouth referrals [204]. - Nu Mexico doubled its customer base to over 10 million in 2024, with a 14 percentage point increase in brand awareness [226]. - The launch of the savings account in Colombia led to a growth from 1 million to 2 million customers in less than 5 months, making it the 4th largest savings account provider in the country [235]. - Nubank expanded its customer base in Colombia from approximately 800,000 in December 2023 to over 1.2 million in December 2024 [253]. - The number of unique customers with accounts in Brazil reached over 199 million as of December 31, 2024, a 2.9% increase from 194 million in 2023, with 47% having an active account [285]. Financial Performance and Revenue - Nubank's revenue for the year ended December 31, 2024, was US$8,409.9 million in Brazil, compared to US$523.1 million in Mexico and US$111.8 million in Colombia, showing significant growth from the previous year [297]. - Customer deposits in Brazil totaled US$387 billion as of December 31, 2024, reflecting a 12% FX-neutral increase from US$374 billion in 2023 [286]. - The average outstanding loans to customers in Brazil reached US$691 billion, with credit cards accounting for 15% of this total [259]. - Nubank's payroll loans in Brazil reached US$122 billion, making it the second largest loan product in terms of credit portfolio [260]. - Nubank's personal unsecured loans achieved a 24% market share in Brazil, with new loan originations growing 32% FX-neutral over 2023 [261]. Market Share and Transaction Volumes - Total Pix transaction volumes reached US$4.9 trillion in 2024, a 54% FX-neutral increase over 2023, with the company holding close to 20% market share in transfer originations [250]. - Nubank's market share in total card transaction volumes in Brazil reached 15% in 2024 [251]. - In Mexico, Nubank grew its credit card customer base to 5.6 million in 2024, a 70% increase from 2023, with 50% of these customers being first-time credit card users [252]. - Nubank's market share in Mexico surpassed 5% in terms of purchase volume according to Banxico statistics [252]. Marketing and Brand Affinity - The company's blog attracted nearly 47 million unique visitors in 2024, covering over 435,000 keywords related to financial education [205]. - The marketing strategy in Brazil resulted in a 10% increase in brand affinity among mass market customers and a 22% increase in client preference compared to December 2023 [212]. - The Ultraviolet brand targeting high-income customers saw an 11 percentage point increase in brand affinity year-over-year [218]. - The influencer program in Brazil generated 156 million impressions and 1.8 million total engagements in 2024 [224]. Regulatory Environment and Compliance - The regulatory environment in Brazil imposes extensive requirements on payment institutions, financial institutions, and securities brokers, ensuring compliance with risk management and anti-money laundering regulations [310]. - Payment institutions in Brazil must segregate prepaid payment account funds from their own assets, holding them in specified instruments to protect against bankruptcy [316]. - The Central Bank of Brazil oversees the activities of financial institutions and regulates the structure and operation of financial markets [349]. - The Anti-Money Laundering Law plays a significant role in regulating banking and payment activities, imposing penalties for illicit activities [420]. Product Development and Innovation - The company launched more than 17 product features in Mexico, enhancing its portfolio value proposition [232]. - Nubank's active insurance policies exceeded two million by December 2024, achieving an annual growth rate of 60% [294]. - The Brazilian e-commerce market reached a gross merchandise volume of almost US$38 billion in 2024, indicating a robust growth environment for Nubank's marketplace initiatives [295]. Risk Management and Capital Requirements - The prudential conglomerate led by Nu Pagamentos is subject to a minimum regulatory capital requirement of US$1.9 billion (R$11.7 billion) as of December 31, 2024 [386]. - The new prudential framework mandates that financial institutions maintain capital ratios based on Total Capital relative to risk-weighted assets, aligning with Basel III standards [379]. - Minimum paid-in capital requirements for payment institutions range from R$1.0 million to R$3.0 million depending on the type of activity [374]. - The transition period for the new provisioning model for expected credit loss will span from 2025 to 2028, allowing for phased incorporation of regulatory capital impacts [373].

Nu Holdings looks grossly undervalued relative to its growth potential.Many hypergrowth stocks stumbled this year as the Trump administration's unpredictable tariffs sparked fresh fears of a recession and drove people back toward more conservative investments. However, investors who can look past those near-term headwinds should be taking the contrarian view and shopping around for some long-term winners.One of those potential winners is Nu Holdings (NU 2.88%), more commonly known as Nubank. It's the larges ...

Core Viewpoint - Nu Holdings Ltd. (NU) has experienced a significant stock decline of nearly 27% over the past six months, contrasting sharply with the 6% growth in the industry [1] Company Performance - NU's performance is notably weaker compared to peers, with Banco Santander (Brasil) S.A. (BSBR) declining approximately 11% during the same period, while SoFi Technologies (SOFI) surged over 26% [2][3] - The company has a diversified revenue model that includes lending, interchange fees, and marketplace services, which helps mitigate risks and provides stability during economic uncertainties [6] - In the fourth quarter, NU reported a 24% year-over-year revenue increase, indicating robust financial performance [8] Customer Growth and Market Position - NU has added 4.5 million customers in the fourth quarter of 2024, bringing its global customer count to 114.2 million, driven by its digital-first strategy [5] - The company is expanding its operations across Latin America, particularly in Mexico and Colombia, where adoption is accelerating [5] Financial Metrics - NU's trailing 12-month Return on Equity (ROE) is 30.4%, significantly higher than the industry average of 11.1% [9] - The trailing 12-month Return on Invested Capital (ROIC) stands at 12.5%, well above the industry average of 3% [11] Earnings and Sales Growth - The Zacks Consensus Estimate for NU's 2025 earnings is 54 cents, indicating a 20% growth from the previous year, with expected earnings growth of 45.7% in 2026 [13] - Sales are projected to grow by 33.7% and 26.3% year-over-year in 2025 and 2026, respectively [13] Valuation Concerns - NU stock is currently trading at 17.77 times forward earnings, more than double the sector's average of 8.58 times, reflecting market optimism about its growth potential [14] - The high valuation introduces risks, as any earnings shortfall or slower growth could lead to a sharp correction [14] Investment Outlook - While NU's innovative fintech model and strong financial performance justify its valuation, the current price levels may limit near-term upside potential [15] - Existing investors may consider holding positions for long-term growth, while new investors might wait for a pullback before entering [15]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Cathie Wood and Warren Buffett could not be more different in their investing style, but they have one thing in common: Nubank (NYSE: NU )The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn moreJames Foord is an economist by trade and has bee ...

Nu Holdings ( NU ) is capitalizing on the LatAm banking by blending scale, speed, and simplicity through a digital-first model. With 114 million clients across Brazil, Mexico, and Colombia, the company’s growth is nothing short of explosive, backed by a rising deposit base, strong engagement, andYiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Edu ...