Nu Holdings Experiences Revenue Surge Amid Stock Volatility

Nu Holdings sees substantial revenue growth and strong profitability. Despite a 26% drop from November peaks, its stocks have grown 180% over two years, making it a potential opportunity for savvy investors.

Date: 27-03-2025

AI Rating: 7

Investment Opportunity Overview

Nu Holdings (NYSE: NU) is witnessing significant growth despite recent stock volatility. The company boasts a more than 470% increase in customer acquisition over five years, reaching 114 million customers, with considerable growth expected in revenue.

Revenue Growth

Nu's revenue trajectory is impressive, projected to grow by 129% over the next three years, having already increased nearly 19-fold between 2019 and 2024. This solid growth could positively influence stock prices, attracting potential investors seeking high-growth opportunities.

Profitability Status

The company has reported an outstanding net profit margin of 17.1% for 2024, an improvement from the previous year. The anticipated rise in earnings per share (EPS) of 172% from 2024 to 2027 further demonstrates a promising outlook for Nu. Strong unit economics, with average revenue per customer rising significantly while maintaining low servicing costs, reinforces the profitability narrative.

Market Sentiment and Stock Valuation

Despite the shares being down 26% since their peak in November, primarily due to market volatility and disappointing Q4 2024 results, the current forward P/E ratio indicates that Nu is reasonably valued compared to the overall S&P 500. This presents a potential buying opportunity for investors looking to enter at a lower price.

Stocks: NU