Nu Holdings trades at only 12x forward earnings despite strong growth, expanding profitability and operating leverage across its businesses and products. It costs under $1 to serve a customer, with no branches, paperwork or hidden fees; it reached 130+ million customers in eleven years and runs a 20% efficiency ratio versus 55% for the average bank. Per @JonahLupton, Q2 revenue rose 50% and net income 67%; he puts it near 11.2x next-twelve-month EPS with fair value of $24-28 per share. x.com  … Show more

Nu Holdings' growth under Lula makes today's selloff look absurd. On a TTM basis since Q1 2023, revenue rose 270% and net income went from a $180 million loss to $3.61 billion, or $0.74 EPS; having done so well during his term, it should be fine going forward. x.com  x.com  x.com 

Nu Holdings' upcoming earnings look unlikely to be well received if the market does not reward Inter & Co's results, since the two have historically traded similarly around earnings. Both operate in the same credit cycle, but Nu has a much lower share of secured lending, putting it at a credit-risk disadvantage, though it is more diversified across countries. x.com 

Nu Holdings remains too cheap at about 13x forward earnings, worth buying more. Per @TheRayMyers, over two years customers rose from 105M to 139M, ARPU from $11 to $17 and net income from $1.5B to $3.6B, while the share price slipped from $14 to $13. x.com 

Nu Holdings delivered another strong quarter and still has plenty of room to raise revenue per customer. Accounting revenue of $5.51B came in 2.6% ahead of Bloomberg consensus. @two_chump notes Nu now has 139 million customers, 50% more than JPMorgan. x.com  x.com  x.com  x.com 

Nu Holdings looks mispriced because its fundamentals keep strengthening while sentiment and macro concerns pressure the stock. It has more than 135 million customers after adding about 4 million in Q1, when revenue was $5.3B and net income $871M, with a 29% ROE, an 83% activity rate and an efficiency ratio improved to 17.6%. That disconnect is the reason to add, though it remains a higher-risk position. x.com 

Nu Holdings still has a massive runway as Nubank expands deeper across Latin America, having already built one of the region's largest digital banking platforms. x.com 

Nu Holdings' management keeps delivering impressive growth and improving profitability, with net income up 67% year over year, supporting its long-term growth story even though the stock is down 10% year to date. x.com 

Nu Holdings has a structural cost advantage from its mobile-first, branchless model, which strips out traditional banks' complexity and high fees, and its valuation offers a good margin of safety. It also adds South American diversification and exposure to a disruptive model. The case assumes a terminal P/E of 16 and 18% annual EPS growth, though it is a quite sensitive business that calls for care. x.com 

Nu is going global with best-in-class management, and buying Monzo could be a big growth opportunity. Per @PaulBonnet, Nubank is rumored to buy Monzo for about $13B. Monzo's loans are only 9-10% of deposits versus 85-90% at Nu, and its net margin is half Nu's, so Nu could likely grow Monzo's EPS at least 50% faster than its core. Nu trades under 4x revenue and would pay just under 6x for Monzo. The deal would be dilutive, likely 30% cash and 70% stock, but expands Nu's market. x.com  x.com  x.com  … Show more