Nu Holdings Stock: Buy, Sell, or Hold?
The high-flying financial technology stock is now in a 34% drawdown.
Expectations tend to play an outsized role when it comes to quarterly earnings. And missed expectations are likely what affected Nu Holdings' (NYSE: NU) stock price after its Q4 release.
The financial technology (fintech) company operating as a neobank in Latin America posted strong Q4 revenue growth (again) but saw shares fall due to the high expectations Wall Street developed going into the report. As of this writing, share prices are down 32% from all-time highs set in mid-November 2024 and down 22% since the report's Feb. 20 release. That drop comes even though Nu is expanding rapidly in its home market of Brazil along with other large Latin American countries such as Mexico and Colombia (Nu Holdings now has over 114 million customers using its digital banking platform).
Given the missed expectations over the latest earnings report, some investors looking into the stock have to be asking: Is Nu Holdings stock a buy, sell, or hold right now? Let's take a closer look at the Latin American fintech giant to see if an answer presents itself.
