Is NU a good stock to buy? We came across a bullish thesis on Nu Holdings Ltd. on Value & Momentum Portfolio’s Substack. In this article, we will summarize the bulls’ thesis on NU. Nu Holdings Ltd.’s share was trading at $11.88 as of June 9th. NU’s trailing and forward P/E were 18.32 and 16.50 respectively according to Yahoo Finance.
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Nu Holdings (NU) is emerging as one of the most compelling fintech growth stories in Latin America despite a sharp pullback in its stock price. Founded in 2013 and headquartered in São Paulo, Brazil, the company has built the largest digital banking platform outside Asia by customer count, serving more than 131 million users across Brazil, Mexico, Colombia, the Cayman Islands, and the United States.
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Nu Holdings operates a fully digital banking ecosystem offering credit cards, personal loans, savings products, investments, insurance, and business accounts, targeting the underbanked population across Latin America with a low-cost, mobile-first platform. The company recently strengthened its global brand presence by securing the naming rights for Inter Miami’s new stadium, now called Nu Stadium, while UBS upgraded the stock to Buy with a $17.6 price target, reflecting growing confidence in the company’s long-term scalability and profitability.
Fundamentally, the business continues to accelerate, with fourth quarter 2025 revenue rising 57% year-over-year and earnings per share surging 65%, marking the strongest earnings growth in over a year. Despite these results, the stock has corrected roughly 25% from its January 2026 highs, largely due to macroeconomic concerns surrounding Brazil, currency volatility, and broader emerging market weakness rather than deteriorating business performance.
Analysts remain overwhelmingly bullish, with price targets ranging from $16 to $22, implying meaningful upside potential. With strong customer growth, expanding monetization, improving profitability, and dominant positioning in digital banking, Nu Holdings appears positioned for substantial long-term growth as market sentiment eventually realigns with fundamentals.
Previously, we covered a bullish thesis on Nu Holdings Ltd. (NU) by Ray Myers in May 2025, which highlighted the company’s accelerating customer growth, improving monetization, and resilient profitability despite macroeconomic pressures. NU’s stock price has depreciated by approximately 9.52% since our coverage. Value & Momentum Portfolio shares a similar view but emphasizes on accelerating earnings growth and the valuation disconnect created by recent market weakness.
Nu Holdings Ltd. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held NU at the end of the first quarter which was 108 in the previous quarter. While we acknowledge the risk and potential of NU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NU and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
