$NU Holdings(NU.US)Context: Nu Holdings is trading at $12.03 while the most followed narrative pegs fair value at $22.74…
$NU Holdings(NU.US)
Context: Nu Holdings is trading at $12.03 while the most followed narrative pegs fair value at $22.74, so the gap between price and thesis is wide and very explicit. The long-term vision, which CEO David Vélez refers to as the company’s “Act III,” is built around three pillars: deepening monetization in Brazil through high-margin products such as mortgages, private banking, and SME services in order to increase ARPAC from $16 to above $25; replicating the model in Mexico and Colombia until full profitability is reached; and preparing for expansion into the United States by leveraging the know-how accumulated across Latin America. At the same time, the planned investment of 45 billion Brazilian reais during 2026 (approximately $8.2 billion) signals an aggressive reinvestment commitment in AI, infrastructure, and segment expansion.
My Trade: Been looking for swing trades to lower my cost for the long term. Anything close to $11 is a good entry in my opinion.
Takeaway: I am excited to see how Nu performs as it announces earnings on Thursday after bell. Long term policy shift in Brazil could be an obstacle that they will have to address shareholders. @Captain's Treasure
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