Does Nu Holdings Ltd. (NU) have a Significant Opportunity for Revenue and Earnings Growth?

White Falcon Capital Management, an investment fund manager, released its third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -4.5% compared to the S&P 500 (CAD), the MSCI All Country (CAD), and the S&P TSX’s returns of -0.9%, -1.2%, and -2.2%, respectively. After a great surge in the first half of the year, the market cooled off in the third quarter, and the portfolio lost some of its gains. In addition, please check the fund’s top five holdings to know its best picks in 2023.

White Falcon Capital Management highlighted stocks like Nu Holdings Ltd. (NYSE:NU) in the third quarter 2023 investor letter. Headquartered in Sao Paulo, Brazil, Nu Holdings Ltd. (NYSE:NU) offers a digital banking platform and digital financial services. On October 13, 2023, Nu Holdings Ltd. (NYSE:NU) stock closed at $7.76 per share. One-month return of Nu Holdings Ltd. (NYSE:NU) was 6.45%, and its shares gained 76.77% of their value over the last 52 weeks. Nu Holdings Ltd. (NYSE:NU) has a market capitalization of $36.803 billion.

White Falcon Capital Management made the following comment about Nu Holdings Ltd. (NYSE:NU) in its Q3 2023 investor letter:

“There are comparable narratives involving Nu Holdings Ltd. (NYSE:NU), Amazon, and Teck Resources, to name a few holdings from the White Falcon portfolio. NU Holdings generates an average monthly revenue per user of $9.3, whereas its competitors are achieving over $35, creating a significant opportunity for revenue and earnings growth. In essence, we believe we hold wonderful businesses with growing revenue streams and potential for operating leverage – all at reasonable valuations.”

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Nu Holdings Ltd. (NYSE:NU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Nu Holdings Ltd. (NYSE:NU) at the end of second quarter which was 38 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.