Nu Holdings (NYSE: NU) has been on a rollercoaster lately. Once seen as one of the most promising fintech players in Latin America, the stock has taken a hit in recent weeks, trading at $10.46 as of March 5, 2025—a slight 0.096% decline. But despite the dip, the company itself is doing better than ever, leading many investors to ask: Is this a buying opportunity, or a warning sign?
Nu Holdings Is Still Growing Fast
Despite the stock’s struggles, Nu Holdings’ business is booming. Just look at the numbers:
- Revenue soared 50% year-over-year to $2.99 billion in Q4 2024.
- Customer base jumped 22%, now at 114 million users across Brazil, Mexico, and Colombia.
- Net profit skyrocketed 87% in Q4, reaching $610 million—one of its strongest earnings performances to date.
Clearly, the company is thriving. So why isn’t the stock reflecting that success?
Why Is Nu Holdings Stock Struggling?
A few things are keeping investors on edge:
1. Valuation Concerns
Even though Nu Holdings is growing fast, some analysts argue that the stock is still expensive compared to more established financial institutions. Growth is great—but at what price?
2. Fintech Market Uncertainty
The fintech industry has been under pressure lately, facing increased regulatory scrutiny, higher competition, and shifting investor sentiment. Some investors are avoiding fintech stocks altogether until the dust settles.
3. Institutional Selling
While big names like Warren Buffett’s Berkshire Hathaway still hold a $1.4 billion stake in Nu Holdings, some major investors have been trimming their positions—which may be contributing to the stock’s volatility.