$NU Holdings(NU.US)

Context: Nu shares slid Monday after the Financial Times reported the company is eyeing what would rank as its largest purchase to date, a possible move on British digital bank Monzo that could carry a price tag as high as $13 billion, paid for through some blend of cash and newly issued stock. Both companies have stayed quiet on the matter publicly, and the FT indicated Nu might settle for taking a partial ownership position instead of buying Monzo outright. Shareholders responded with hesitation, mainly worried about how a transaction potentially valuing Monzo well above its 2024 mark of £4.5 billion ($5.95 billion) might squeeze Nu’s earnings in the near term or water down existing shareholders if the company leans on issuing new shares to help pay for it.

My Trade: Bought the dip yesterday as I think it was an overexaggerated drop. Targeting a high $13/$14 to make a little profit.

Takeaway: Today’s bounce stands out given the broader backdrop, since Nu sits within Financials, a sector ranked eighth out of 11 S&P groups today and down 0.60% on the session. Nu itself is outperforming that weak sector by 2.36 percentage points, even as Financials have struggled more broadly, down 6.65% over the past month and 1.66% over the past 90 days. @Captain's Treasure