Stocker-Man
Long-Term Growth Investor & Swing Trader, Public Investing Journal
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.comÂ
Nu's new $1B share buyback signals management sees the stock as undervalued while sentiment is weak. The market fears high rates, ugly macro, Brazil uncertainty and the CFO change, yet Nu keeps growing fast, printing profits and expanding across Latin America. Nu and SoFi are both priced as if the macro will stay ugly forever while their businesses keep adding customers, growing revenue and improving profitability. High rates hurt fintech multiples short term, which creates the opportunity. x.comÂ
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.comÂ
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.comÂ
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.comÂ
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.comÂ
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
SoFi's conservative 2027 guide leaves room to beat expectations, barring a macro shock. Its $6.4B revenue target is 4.2% above consensus and $0.90 EPS target is $0.08 ahead; Q3 revenue grew 44.5% and net margin widened 280 basis points year over year. Cross-selling is gaining traction, management says no capital raise is needed through 2027, and CEO Anthony Noto says he is as confident in durable growth at high rates as at low rates. x.com x.com x.com x.com x.com x.com x.com x.com x.comÂ
Nu Holdings is a buy today because it shows operating leverage. Since 2020, monthly revenue per active customer has risen 382%, from $3.30 to $15.90, while the cost to serve each customer fell from $1.10 to $1.00: more revenue at lower cost. x.com x.comÂ
Nubank keeps proving it is not just adding customers but making more money from each one, which is what long-term compounding looks like. Revenue rose 39% year over year to $5.9B, and quarterly net income topped $1B for the first time. x.comÂ
