Core Insights - Nu Holdings' primary strength lies in its increasing revenue durability, which allows the company to convert a large customer base into recurring income streams that are less affected by macroeconomic fluctuations [1] - The company has shifted focus from user growth to monetizing its existing user base through a diverse range of financial services, resulting in a 39% year-over-year revenue increase to $4.2 billion in Q3 2025 [2] - Nu Holdings is expanding high-engagement products, which enhances average revenue per user and provides stability against market volatility [3] Revenue and Growth - The company added over 4 million new users in Q3 2025, bringing its total customer base to 127 million, with an activity rate exceeding 83% [1] - The disciplined approach to expanding everyday transaction services, low-cost deposits, and cross-selling has led to a more predictable revenue model [3] - The technology-driven cost structure allows for efficient margin enhancement as more products are adopted by existing users [4] Competitive Landscape - Comparisons with Block and SoFi Technologies highlight the potential for Nu Holdings to develop a multi-product financial platform that increases user engagement and revenue durability [5][6] - Block's ecosystem and SoFi's diversified product offerings serve as benchmarks for Nu Holdings' growth strategy [5][6] Valuation and Performance - Nu Holdings' stock has increased by 47% over the past year, slightly outperforming the industry average growth of 46% [7] - The company trades at a forward price-to-earnings ratio of 21.55X, significantly higher than the industry average of 10.71X, indicating a premium valuation [9] - The Zacks Consensus Estimate for NU's 2025 earnings has been rising, reflecting positive market sentiment [10]

Core Viewpoint - Nubank plans to secure a banking license in Brazil by 2026 following regulatory changes that prevent non-bank companies from using the term "bank" in their branding [1][2]. Group 1: Company Operations - Nubank currently operates as a payment institution, credit, financing, investment company, and securities brokerage in Brazil, holding all necessary operational licenses for its existing products [3]. - The transition to a banking institution is not expected to significantly alter Nubank's capital or liquidity requirements, nor will it impact its financial stability [3]. Group 2: Customer Impact - Nubank has assured that the move to obtain a banking license will not affect its customers, and all operations will continue as usual [2][3]. Group 3: Market Position - Nubank boasts over 110 million customers and a market valuation of $85 billion, highlighting its significant presence in the digital financial services sector [1]. - The company has been instrumental in including 28 million individuals in the financial system since its founding 12 years ago [4]. Group 4: Regulatory Context - Brazilian regulators have given companies 120 days to submit compliance plans with the new regulations regarding the use of the term "bank" [2]. - Nubank's subsidiary in Mexico, Nu Mexico, has already received banking license approval, allowing it to expand its product offerings [5].

Group 1 - Banco Santander set a price target of $22 for NYSE:NU, indicating a potential increase of about 26.15% from the current stock price of $17.44 [1][6] - Nubank is planning to secure a banking license in Brazil by 2026 to comply with new regulations from Brazil's central bank and the National Monetary Council [2][6] - Nubank's capital, liquidity, and customer base, which exceeds 110 million in Brazil, will remain unaffected despite regulatory changes [3][6] Group 2 - Nubank's market capitalization is approximately $84.1 billion, with a trading volume of 31.8 million shares [5] - NU's stock has fluctuated between a high of $17.84 and a low of $9.01 over the past year, reflecting market volatility [4]

Santander upgraded Nu Holdings (NYSE:NU) from Neutral to Outperform, indicating a positive outlook on the company's future performance.The average brokerage recommendation (ABR) for NU is 1.82, suggesting a consensus view of a Strong Buy to Buy rating among analysts.Despite the upgrade, NU's stock experienced a slight decrease of $0.17 or approximately -0.97% on the day of the announcement.Nu Holdings (NYSE:NU) is a prominent digital banking platform in Latin America, offering a range of financial services. ...

Digital financial services platform Nubank said it intends to obtain a banking license in Brazil in 2026.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.Nubank is doing so to comply with a new rule issued by Brazil ...

Core Viewpoint - Nubank, one of the largest digital financial services platforms globally, intends to obtain a banking license in Brazil, which aligns with regulatory requirements and will not affect its operations or client services [1] Group 1: Company Overview - Nubank has over 110 million customers in Brazil and has facilitated the financial inclusion of 28 million individuals since its founding 12 years ago [1] - The company's CEO, Livia Chanes, emphasizes that Nubank's identity and mission to simplify customer experiences will remain unchanged despite the new banking license [1] Group 2: Regulatory Compliance - Nubank currently operates as a Payment Institution, a Credit, Financing, and Investment Company, and a Securities Brokerage Company, fully complying with all applicable regulations [1] - The addition of a banking institution does not materially change Nubank's capital and liquidity requirements, ensuring that its financial solidity and resilience remain intact [1]

Core Viewpoint - The article emphasizes the importance of portfolio diversification and highlights five growth stocks that present significant short-term and long-term investment opportunities beyond artificial intelligence stocks [2]. Group 1: MercadoLibre - MercadoLibre operates an online marketplace across 18 Latin American countries, benefiting from the region's growing e-commerce adoption [3]. - The company reported a 49% year-over-year revenue increase (currency neutral) in Q3 2025, with gross merchandise volume (GMV) rising by 35% [4]. - MercadoLibre is expanding its fintech services, gaining new users rapidly and increasing its credit portfolio, indicating strong growth potential [4][5]. Group 2: Dutch Bros - Dutch Bros operates over 1,000 stores in the U.S. and plans to expand significantly, aiming for 7,000 stores in the future [9]. - The company achieved a 25% year-over-year sales increase in Q3 2025, with comparable sales up by 5.7% and earnings per share rising from $0.11 to $0.14 [9]. - Dutch Bros focuses on speed and friendly service, with a business model primarily consisting of drive-thru locations and mobile ordering [8]. Group 3: On Holding - On has established a premium athletic wear brand, particularly known for its Cloudtec footwear, and is experiencing robust growth despite a challenging market [12][13]. - The company reported a 35% year-over-year revenue increase (currency neutral) in Q3 2025, with a gross margin of 60.6% and a 290% increase in net income [13]. - On is expanding its brand presence through both direct-to-consumer and wholesale channels, indicating potential for significant investor gains [13]. Group 4: Nu Holdings - Nu is a digital bank based in Brazil, serving over 60% of the adult population and expanding into new regions like Mexico and Colombia [14][15]. - The company reported a 39% year-over-year increase in revenue and net income in Q3 2025, with average revenue per active user rising from $11 to $12 [15]. - Nu is pursuing long-term expansion plans, including applying for a bank charter in the U.S., which presents substantial growth opportunities [15]. Group 5: Amazon - Amazon is the largest e-commerce company in the U.S., with a significant market share of around 40%, and is continuously launching new services [17]. - The company’s Amazon Web Services (AWS) is the largest cloud computing provider globally, playing a crucial role in its growth, particularly in AI [18]. - Management sees explosive growth opportunities in AI, indicating that Amazon could be a major long-term winner in this space [18].

Core Insights - Both OppFi Inc. (OPFI) and Nu Holdings Ltd. (NU) are fintech companies focusing on consumer lending for underserved populations and emerging credit markets [1] Group 1: OppFi Inc. (OPFI) - OPFI reported Q3 2025 revenues of $155.1 million, reflecting a 13.5% year-over-year growth driven by a 12.5% increase in net originations and a 79% auto approval rate [2][3] - Adjusted net income for OPFI improved by 41.4% year-over-year to $40.7 million, supported by strong revenue growth and disciplined expense management [3] - Management raised 2025 revenue guidance to $590-$605 million and adjusted EPS expectations to $1.54-$1.60, indicating strong demand and operational enhancements [4] - OPFI's forward earnings multiple is 5.68 times, lower than its 12-month median of 6.91 times, making it more attractive to value investors [13] Group 2: Nu Holdings Ltd. (NU) - NU achieved a 39% year-over-year revenue growth in Q3 2025, adding 4.3 million new customers, bringing the total to 110.1 million across Brazil, Mexico, and Colombia [5][6] - Gross profit for NU reached $1.8 billion, a 32% increase year-over-year, with a margin expansion to 43.5% [6] - NU's deposits grew by 37.1% year-over-year to $38.8 billion, and its loan portfolio increased by 42% to $30.4 billion, indicating strong asset quality [7] - NU's forward earnings multiple stands at 20.76 times, slightly above its median of 20.71, suggesting a higher valuation compared to OPFI [13] Group 3: Comparative Analysis - The Zacks Consensus Estimate for OPFI's 2025 sales indicates a year-over-year growth of 13.6%, while NU's estimates show a 35.9% increase [9][11] - OPFI's Zacks Rank is 1 (Strong Buy), while NU carries a Zacks Rank of 2 (Buy), indicating a stronger investment appeal for OPFI [17] - Both companies are positioned as compelling fintech players, but OPFI is considered to offer better upside potential due to its lower valuation compared to NU [16]

Group 1 - The Data Driven Investor has achieved significant returns, with a Long Term Growth Portfolio up nearly 194% since 2018, driven by disciplined strategy and risk-aware execution [1] - The service focuses on uncovering alpha in the AI revolution while managing downside risk in a volatile tech landscape [2] - The investment approach includes Options Ideas for short-term income generation, Quantitative Stock Strategies, stock picking algorithms, Macro analysis, and tactical ETF strategies [2] Group 2 - Andres Cardenal, CFA, leads The Data Driven Investor, bringing over 25 years of experience in investment research and strategy development [2] - The company emphasizes a transparent approach to investing, with a 4.9-star average rating [1]

Core Insights - Howard Marks emphasizes the importance of balancing risk and reward in investment strategies, particularly for retail investors [1] - Oaktree Capital Management, led by Marks, is noted for its prudent investment approach, especially in late-stage markets [2] Company Summaries - **Nu Holdings**: Oaktree initiated a new position in Nu Holdings worth approximately $72 million, representing over 1.5% of its overall portfolio. The investment is significant due to Nu's international growth potential and modest valuation, despite Berkshire Hathaway's exit from its stake [3][4] - **Performance Metrics**: Nu Holdings has a forward price-to-earnings (P/E) multiple of 19.8, following strong earnings growth in Q3, making it an attractive option for investors seeking emerging market opportunities [4][7] - **Sea Limited**: Oaktree also added Sea Limited to its portfolio in Q3, which serves the Southeast Asian market. This investment provides diversification and growth potential similar to that of Nu Holdings [6][7]