Nu Holdings stock drops despite strong revenue growth
fool.com —
Nu Holdings' stock has dropped about 37% from its 52-week high, despite a strong growth record. The company, Latin America's largest digital bank, reported a revenue increase from $1.7 billion in 2021 to $11.5 billion in 2024, with a 43% growth rate last year. Concerns about a slowdown in growth and rising customer acquisition costs have affected investor sentiment. Analysts project revenue growth will moderate to 29% in 2025, with earnings per share expected to rise to $0.56, a 22% increase from 2024. Nu Holdings plans to expand into new countries, which could drive future growth. The stock's current valuation is lower than last year, making it potentially attractive for investors looking for long-term opportunities.