Nu Holdings Ltd.

Below is Validea's guru fundamental report for NU HOLDINGS LTD (NU). Of the 22 guru strategies we follow, NU rates highest using our Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
NU HOLDINGS LTD (NU) is a large-cap growth stock in the Money Center Banks industry. The rating using this strategy is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of NU HOLDINGS LTD
More Information on Martin Zweig
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
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Dividend Aristocrats 2025
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Martin Zweig Detailed Fundamental Analysis - NU

MercadoLibre MELI is slated to report third-quarter 2025 results on Oct. 29.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $7.25 billion, suggesting year-over-year growth of 36.55%. The consensus mark for earnings is pegged at $9.43 per share. The estimate indicates year-over-year growth of 20.43%.
MELI Earnings Surprise History
MELI’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 14%.
MercadoLibre, Inc. Price and EPS Surprise
Earnings Whispers for MELI
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
MELI has an Earnings ESP of -0.21% and a Zacks Rank #4 (Sell) at present.
Top-Line Growth Estimates for Q3
The Zacks Consensus Estimate for third-quarter 2025 Argentina revenues is pegged at $1.56 billion, suggesting an increase of 51.4% from the figure reported in the year-ago quarter.
The consensus mark for Brazil revenues is pinned at $3.92 billion, indicating an increase of 34.5% from the figure reported in the year-ago quarter.
The consensus mark for Mexico revenues is pinned at $1.67 billion, indicating a 45.7% increase from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for revenues from other countries is pegged at $293.12 million, suggesting a 32.6% increase from the figure reported in the year-ago quarter.
Factors Shaping Upcoming Results of MELI
MercadoLibre is expected to have entered the third quarter of 2025 with concerning momentum despite delivering 34% year-over-year revenue growth in the prior quarter, as the operating margin contraction of 210 basis points implied rising profitability strain. The June expansion of Brazil’s free shipping program — cutting the minimum threshold from BRL79 to BRL19 — is likely to have continued eroding margins through the quarter to be reported, driven by higher fulfilment and subsidy costs. Elevated marketing expenses are expected to have persisted as the company defended its share against intensifying competition from Amazon (AMZN), Sea Limited (SE) and Nubank (NU).
Competitive dynamics across Latin America are expected to have remained intense, shaping a more challenging backdrop for MELI. In Brazil, Amazon’s continued logistics buildout likely enhanced delivery speed and product breadth, narrowing MELI’s advantage in convenience and assortment. Sea Limited’s Shopee platform is expected to have sustained strong traction through aggressive discounting and interactive shopping tools, likely diverting lower-ticket purchases and weighing on take rates and order values. Meanwhile, Nubank’s expanding financial ecosystem across credit cards, payments and investments is expected to have intensified pressure on Mercado, limiting engagement and share gains in Brazil and Mexico.
Political and macroeconomic conditions are expected to have further complicated MELI’s performance. In Argentina, corruption allegations involving President Milei’s administration likely heightened uncertainty and weakened consumer sentiment, while depreciation of the peso and real is expected to have pressured reported revenue and inflated FX losses. Higher local interest rates likely curbed credit expansion, and the persistently elevated 18% non-performing loan ratio over 90 days is expected to have sustained asset quality concerns.
Despite all these pressures expected to weigh on the quarter under review, MercadoLibre’s continuous efforts to deepen customer engagement through enhanced logistics, targeted marketing and product diversification are expected to have supported revenue momentum. Even though rising credit risk remains a concern, the company’s strong advertising traction, growing base of fintech users, and sustained strength in Brazil and Mexico likely contributed positively to top-line growth. MELI’s third-quarter performance is expected to reflect steady operational momentum across commerce and fintech, though overall efficiency and margins are likely to have remained constrained. Persistent macro volatility, tighter financial conditions, and heightened regional competition are expected to have limited the extent of profitability recovery despite sustained revenue growth.
MELI Price Performance & Stock Valuation
MercadoLibre’s shares have advanced 27.1% year to date, outpacing the Retail-Wholesale sector’s 7.1% increase and the S&P 500’s 16.6% rise. In comparison, Amazon has added 2.2%, while Sea Limited and Nubank have delivered stronger returns of 45.8% and 52.9%, respectively. The performance, though strong, trails key regional peers, suggesting that persistent margin pressures and intensifying regional competition may have limited the stock’s relative momentum.
MELI’s YTD Price Performance
Image Source: Zacks Investment Research
Compared to the broader Zacks Internet–Commerce industry, MELI’s valuation remains elevated despite the prospect of a softer quarter. The stock currently trades at a forward 12-month Price-to-Sales of 3.2X, versus the industry average of 2.23X. This wide premium appears difficult to justify given margin pressures and slowing operating leverage, indicating that the current valuation may already overstate near-term growth potential. The Value Score of D further reinforces this view, suggesting stretched multiples and limited scope for re-rating until earnings visibility improves. With such premium valuations, investors should consider reducing exposure before potential volatility surrounding the upcoming quarterly results.
MELI Trades at a Premium
Image Source: Zacks Investment Research
Conclusion
MercadoLibre’s third-quarter results are expected to reveal resilient revenue growth but persistent pressure on margins amid higher fulfilment costs, FX volatility and competitive intensity. With operating leverage yet to recover and valuation still elevated, the near-term outlook remains cautious. The stock’s premium valuation further limits upside potential, indicating that near-term growth optimism is already priced in amid moderating earnings momentum. MercadoLibre currently has a Zacks Rank #4 (Sell), which implies investors should stay away from the stock right now.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MercadoLibre's Pre-Q3 Earnings Analysis: Hold or Fold the Stock?

Key Points
Growth stocks tend to represent companies that have a strong market position, disrupt industries, or tap into emerging markets, offering the potential for significant returns.
Businesses that provide essential services or products, such as digital infrastructure or financial services, have promising prospects.
Look for companies that have an untapped opportunity or that effectively leverage their existing competitive strengths to maintain strong growth.
Investing in the stock market is a great way to turn your savings into assets that grow through the power of compounding. Among the various strategies available, owning growth stocks provides exposure to fast-growing companies and offers the potential for outsize returns.
Growth stocks are shares of companies that are expected to expand revenue and earnings faster than average. Often this is done by disrupting industries, scaling technology, or tapping into previously underserved markets. Over long horizons, that growth can translate into substantial returns for investors.
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For patient investors willing to weather short-term volatility, growth stocks offer exposure to the most dynamic parts of the economy. If you have $1,000 saved up and are looking to invest in stocks with solid long-term growth prospects, here are four stocks to consider scooping up today.
Alphabet
Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), the parent company of Google, is a global technology giant with revenue streams spanning search, digital advertising, YouTube, Android, Google Cloud, and other emerging bets such as Waymo (self-driving) and DeepMind (artificial intelligence research).
Advertising remains its core business, where Google Search and YouTube dominateglobal marketshare, monetizing billions of daily interactions through targeted ads. Google Cloud is the company's fastest-growing segment, offering infrastructure and AI-driven services to enterprises. Its AI integration, from Gemini models to Search Generative Experience and AI-powered advertising, positions it at the forefront of the next digital wave.
The long-term growth opportunity rests in expanding Google Cloud margins, monetizing AI, and scaling moonshots like Waymo and Verily (a life science research company) as new revenue drivers. Alphabet's combination of steady cash flow and exposure to structural trends makes it a compelling growth stock for long-term investors.
Vertiv
Vertiv (NYSE: VRT) provides critical digital infrastructure, including power, cooling, and monitoring systems that keep data centers, telecom networks, and industrial applications running full-time. It earns revenue through equipment sales, service contracts, and long-term maintenance deals.
As hyperscalers and AI data centers expand globally, Vertiv's solutions have become indispensable for reliable power management and thermal efficiency. Vertiv's long-standing relationships with major data center operators and original equipment manufacturers (OEMs) make it a pick-and-shovel provider to the AI and cloud revolutions.
The company's growth opportunity is enormous: The AI-driven buildout of compute infrastructure demands massive new power and cooling capacity. Vertiv's orders and backlog have surged as customers race to deploy GPU clusters requiring higher energy densities. For long-term investors, Vertiv represents a growth stock play on the buildout of digital infrastructure.
Nu Holdings
Nu Holdings (NYSE: NU) is a Latin American digital banking platform serving over 100 million customers across Brazil, Mexico, and Colombia. The company has done an excellent job bringing banking to millions across Latin America. Nu generates revenue through various financial products, including credit cards, personal loans, interest spreads, and interchange fees.
Nu's strengths include its low-cost operating model and impressive market penetration in Brazil, where 60% of its adult population has an account with the bank. Further growth will come from other regions of Latin America, including Mexico and Colombia, where Nu is making inroads and adding customers at a rapid rate.
The company is leveraging its massive user base to cross-sell to its customers. It offers various products in addition to its financial offerings, including marketplace offerings (Nu Marketplace), travel solutions (Nu Travel), and telecommunications services (NuCel). For long-term investors, Nu offers solid growth potential and should benefit from structural tailwinds from ongoing digital adoption globally.
Interactive Brokers
Interactive Brokers (NASDAQ: IBKR) is one of the world's leading electronic trading platforms for retail, professional, and institutional investors, with a particular focus on tech-savvy customers. The company earns revenue through commissions, interest income on margin loans and idle cash, and fees from data, technology, and clearing services.
Interactive Brokers' greatest strength is its efficiency and automation. The company takes a serious approach to automating as much as possible, and a majority of its senior managers have a background in software engineering. As a result, the company boasts an industry-leading operating margin and a technological advantage.
Its growth opportunity lies in global expansion, especially among international traders, and continued adoption of low-cost, direct-access brokerage. Rising interest rates have also boosted its net interest income significantly, while the rise of global retail investing adds tailwinds.
For long-term investors, Interactive Brokers offers a mix of steady earnings, excellent margins, and exposure to global trading growth.
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Courtney Carlsen has positions in Alphabet, Interactive Brokers Group, and Nu Holdings. The Motley Fool has positions in and recommends Alphabet and Interactive Brokers Group. The Motley Fool recommends Nu Holdings and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group and short January 2027 $46.25 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

4 Growth Stocks to Invest $1,000 in Right Now

Investors in Nu Holdings Ltd (Symbol: NU) saw new options become available today, for the December 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the NU options chain for the new December 5th contracts and identified one put and one call contract of particular interest.
The put contract at the $15.00 strike price has a current bid of 50 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $15.00, but will also collect the premium, putting the cost basis of the shares at $14.50 (before broker commissions). To an investor already interested in purchasing shares of NU, that could represent an attractive alternative to paying $15.54/share today.
Because the $15.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 60%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.33% return on the cash commitment, or 28.27% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Nu Holdings Ltd, and highlighting in green where the $15.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $16.00 strike price has a current bid of 30 cents. If an investor was to purchase shares of NU stock at the current price level of $15.54/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $16.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.89% if the stock gets called away at the December 5th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if NU shares really soar, which is why looking at the trailing twelve month trading history for Nu Holdings Ltd, as well as studying the business fundamentals becomes important. Below is a chart showing NU's trailing twelve month trading history, with the $16.00 strike highlighted in red:
Considering the fact that the $16.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 51%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.93% boost of extra return to the investor, or 16.37% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 91%, while the implied volatility in the call contract example is 63%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $15.54) to be 48%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NU December 5th Options Begin Trading

Key Points
Nu continues to add customers at a high rate, and it's entering new markets.
It's still monetizing its existing user base with new products.
Despite a tricky macroeconomic situation in Brazil, Nu's credit business is flourishing.
Nu Holdings (NYSE: NU) stock has had an incredible rise, and it's up 250% during the past three years. It consistently reports high growth and increasing profit, and it looks like it's just getting started. Let's see where it could be five years from now.
Revenue: Double-digit percentage growth
Nu has only been around for about a decade, but it's been growing by leaps and bounds. Its founders developed it to offer a better experience for Brazilians shut out of the financial system, which has high barriers to entry even for the affluent. Nu offers low-cost, all-digital products, and it's gaining customers even from higher socioeconomic brackets at a fast pace.
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In the 2025 second quarter, it added 4.1 million customers, or 17% more than last year. It ended the quarter with 122.7 million customers in total, including 107 million in Brazil, which is more than 60% of the adult population.
But don't worry about it hitting a ceiling. Not only does it continue to add customers in Brazil at the rate of about a million monthly, it's recording faster percentage growth in Mexico and Colombia, and it's monetizing its existing customer base with more products. It's also considering entering new markets, with an investment in other global digital banks and a recent application for a bank charter in the U.S.
Revenue increased 40% year over year (currency neutral) in the 2025 second quarter, and with all of its varied growth drivers, I anticipate it continuing to keep up double-digit percentage revenue growth in five years.
Profits: Increasing
Nu is a classic case of a company that's scaling profitably. Its business is low-cost to operate, since its investments in research and development and marketing are still much lower than the real estate required for hundreds or thousands of physical bank branches.
As its cross-selling strategy works, customers are purchasing more products, resulting in higher average revenue per active customer (ARPAC), all while its cost to serve remains low. ARPAC increased 18% year over year to $12.20 in the second quarter, while cost to serve declined from $0.90 to $0.80.
As Nu captures greater market share, monetizes its customer base, and enters new markets, profits should keep rising.
Business: Expanding its platform
Nu continues to roll out new products and target new cohorts. It has released several products geared to the higher-spending, wealthier clients, and it recently rolled out a new credit card for users under age 18. Not only does that add a new user base, it targets younger members who will grow with the platform and drive long-term engagement. It's also connected to the user's bank account, linking several products together and lending itself to the cross-selling strategy.
Expect Nu to expand the platform during the next five years and open up new ways to make more money.
Credit: Stronger business
Part of Nu's strong performance is coming from its growing credit portfolio, which increased 40% year over year in the second quarter. Net interest income increased 33% over last year, and loan originations were up 43%.
There has been concern about the macroeconomic situation in Brazil, which is still experiencing high inflation. That's coming through to Nu's platform in higher default rates and lower net interest margin, but the business is growing fast.
In five years, the situation is likely to be improved, and Nu should have an even stronger credit business.
Stock: Outperforming the market
Nu stock is up nearly 50% this year, crushing the market. There's every reason to believe that it can continue to beat the market during the next five years and beyond.
Should you invest $1,000 in Nu Holdings right now?
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Jennifer Saibil has positions in Nu Holdings. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Where Will Nu Stock Be in 5 Years?

The NASDAQ 100 After Hours Indicator is up 4.16 to 25,145.18. The total After hours volume is currently 131,009,346 shares traded.
The following are the most active stocks for the after hours session:
SoFi Technologies, Inc. (SOFI) is +0.06 at $28.74, with 7,464,776 shares traded. SOFI's current last sale is 124.96% of the target price of $23.
Amazon.com, Inc. (AMZN) is unchanged at $216.48, with 3,791,949 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Kinder Morgan, Inc. (KMI) is unchanged at $27.52, with 3,756,303 shares traded.KMI is scheduled to provide an earnings report on 10/22/2025, for the fiscal quarter ending Sep2025. The consensus earnings per share forecast is 0.28 per share, which represents a 25 percent increase over the EPS one Year Ago
Aurora Innovation, Inc. (AUR) is unchanged at $5.32, with 3,135,740 shares traded. As reported in the last short interest update the days to cover for AUR is 7.829046; this calculation is based on the average trading volume of the stock.
Nu Holdings Ltd. (NU) is +0.02 at $15.43, with 2,769,577 shares traded. As reported by Zacks, the current mean recommendation for NU is in the "buy range".
Oklo Inc. (OKLO) is +0.5259 at $159.58, with 2,716,514 shares traded. OKLO's current last sale is 187.74% of the target price of $85.
Hewlett Packard Enterprise Company (HPE) is unchanged at $22.87, with 2,571,697 shares traded. HPE's current last sale is 84.7% of the target price of $27.
Stride, Inc. (LRN) is -0.53 at $145.06, with 2,502,933 shares traded. As reported by Zacks, the current mean recommendation for LRN is in the "buy range".
Kenvue Inc. (KVUE) is unchanged at $14.96, with 2,378,198 shares traded. KVUE's current last sale is 72.98% of the target price of $20.5.
Invesco QQQ Trust, Series 1 (QQQ) is +0.46 at $612.00, with 2,261,430 shares traded., following a 52-week high recorded in today's regular session.
Robinhood Markets, Inc. (HOOD) is unchanged at $135.80, with 2,098,852 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2025. The consensus EPS forecast is $0.49. As reported by Zacks, the current mean recommendation for HOOD is in the "buy range".
NVIDIA Corporation (NVDA) is +0.25 at $182.89, with 1,962,378 shares traded. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After Hours Most Active for Oct 20, 2025 : SOFI, AMZN, KMI, AUR, NU, OKLO, HPE, LRN, KVUE, QQQ, HOOD, NVDA

Nu Holdings Ltd. NU has witnessed a 7% slide in its stock price over the past month, outpacing the broader industry’s 2% decline.
Image Source: Zacks Investment Research
This piece examines NU’s recent performance, growth trajectory, and valuation to determine whether the dip presents an attractive buying opportunity.
NU is Scaling Fast and Monetizing Even Faster
NU is not just growing; it’s accelerating, and few fintech firms can match its pace. In the second quarter of 2025 alone, the digital banking innovator added over 4.1 million new customers, taking its total customer base to 122.7 million, a robust 17% year-over-year increase. NU’s ability to expand rapidly while maintaining strong revenue growth highlights its exceptional scalability and operational discipline.
What makes NU’s growth story especially compelling is its sharp focus on monetization. The company’s average revenue per active customer surpassed $12 for the first time, up 18% year over year on a foreign-exchange-neutral (FXN) basis. This demonstrates that NU isn’t just acquiring users, it’s deepening engagement and improving unit economics across markets.
While many fintechs chase expansion at the cost of profitability, NU Holdings stands apart. Revenues grew 40% year over year at FXN in the second quarter, fueled by diversified income streams such as lending, interchange fees, and marketplace services. NU’s digital-first, highly scalable platform has redefined financial access in Latin America, disrupting traditional banks and positioning itself as a trusted regional leader.
Its flagship product, NuBank, continues to reshape the banking experience across Brazil, while expansion in Mexico and Colombia strengthens its regional footprint. By offering simple, low-cost, and transparent financial services, NU is empowering underserved consumers and capturing strong market share momentum.
Comparing NU With Global Fintech Peers
As NU continues to lead in Latin America, U.S.-based peers like SoFi Technologies SOFI and Block XYZ are charting different paths to growth. SoFi focuses on deepening member relationships by offering integrated financial services, ranging from lending to investing and digital banking, with an emphasis on customer lifetime value over sheer expansion. Meanwhile, Block is advancing its dual-ecosystem approach, combining consumer engagement through Cash App with business solutions via Square.
While both SoFi and Block are progressing steadily in their respective markets, NU’s unmatched scale and speed of customer acquisition in emerging economies create a competitive edge that few global fintechs can rival. NU’s regional dominance, strong brand loyalty, and expanding monetization base highlight its distinct growth story in the global fintech arena.
NU’s Strong Capital Efficiency
NU also excels in capital efficiency, showcasing strong profitability metrics. Its trailing 12-month return on equity stands at 29.9%, nearly triple the industry average of 11.4%.
Image Source: Zacks Investment Research
Likewise, NU’s return on invested capital of 14.5% significantly surpasses the sector average of 3.4%, underscoring management’s effectiveness in deploying capital to generate robust shareholder returns.
Image Source: Zacks Investment Research
NU Looks Expensive, But With Reason
Due to its impressive growth, NU stock currently trades at a steep premium. With a forward price-to-earnings multiple of 19.57, nearly double the industry average of 10.13, NU Holdings appears richly valued. This premium pricing reflects strong investor confidence in NU’s sustainable growth potential, expanding customer base, and proven fintech model.
Any earnings miss or slowdown in user growth could trigger a valuation correction. Investors should weigh NU’s exceptional performance against its high expectations. The company’s long-term outlook remains bright, but near-term volatility cannot be ruled out.
Bottom Line
NU’s dominance in Latin America and robust financial execution make it a standout name in the global fintech space. However, given its lofty valuation and recent volatility, a hold stance appears appropriate for now. The company’s long-term fundamentals remain strong, but waiting for a more favorable entry point could offer better risk-adjusted returns.
NU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NU Stock Drops 7% in a Month: Is it Time to Buy the Dip?

Fintel reports that on October 16, 2025, UBS maintained coverage of Nu Holdings (NYSE:NU) with a Neutral recommendation.
Analyst Price Forecast Suggests 12.03% Upside
As of September 29, 2025, the average one-year price target for Nu Holdings is $16.50/share. The forecasts range from a low of $7.78 to a high of $21.00. The average price target represents an increase of 12.03% from its latest reported closing price of $14.73 / share.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Nu Holdings is 11,456MM, an increase of 95.85%. The projected annual non-GAAP EPS is 0.56.
What is the Fund Sentiment?
There are 1,297 funds or institutions reporting positions in Nu Holdings. This is an increase of 63 owner(s) or 5.11% in the last quarter. Average portfolio weight of all funds dedicated to NU is 1.00%, an increase of 8.69%. Total shares owned by institutions decreased in the last three months by 1.80% to 3,337,631K shares. The put/call ratio of NU is 0.58, indicating a bullish outlook.
What are Other Shareholders Doing?
Baillie Gifford holds 260,982K shares representing 6.90% ownership of the company. In its prior filing, the firm reported owning 265,160K shares , representing a decrease of 1.60%. The firm increased its portfolio allocation in NU by 12.86% over the last quarter.
Capital Research Global Investors holds 194,881K shares representing 5.15% ownership of the company. In its prior filing, the firm reported owning 264,058K shares , representing a decrease of 35.50%. The firm decreased its portfolio allocation in NU by 8.95% over the last quarter.
Jpmorgan Chase holds 95,440K shares representing 2.52% ownership of the company. In its prior filing, the firm reported owning 134,659K shares , representing a decrease of 41.09%. The firm decreased its portfolio allocation in NU by 14.96% over the last quarter.
Wcm Investment Management holds 73,819K shares representing 1.95% ownership of the company. In its prior filing, the firm reported owning 76,982K shares , representing a decrease of 4.29%. The firm increased its portfolio allocation in NU by 9.01% over the last quarter.
Sc Us holds 72,785K shares representing 1.92% ownership of the company. In its prior filing, the firm reported owning 109,191K shares , representing a decrease of 50.02%. The firm decreased its portfolio allocation in NU by 33.25% over the last quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UBS Maintains Nu Holdings (NU) Neutral Recommendation

Below is Validea's guru fundamental report for NU HOLDINGS LTD (NU). Of the 22 guru strategies we follow, NU rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consistent intermediate-term relative performance.
NU HOLDINGS LTD (NU) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of NU HOLDINGS LTD
More Information on Wesley Gray
Wesley Gray Portfolio
About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". He is also the author (along with co-author Tobias Carlisle) of "Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors". He is an industry recognized expert in the application of quantitative investing strategies. Wes is also a former Marine and has his Phd from the Univerisity of Chicago, where he studied under Nobel Prize winner Eugene Fama.
Additional Research Links
Harry Browne Permanent Portfolio
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NU Quantitative Stock Analysis

Key Points
MercadoLibre is growing revenue above 30%.
But profitability is slipping as shipping and logistics costs rise.
Competition from Shopee, Temu, and Nubank means MercadoLibre must balance growth with profitability more carefully.
When investors think about MercadoLibre (NASDAQ: MELI), the story has always sounded straightforward: a dominant e-commerce and fintech platform with enormous growth potential in Latin America. The company has been called the "Amazon" of the region, and for years, that comparison worked.
But the latest results suggest a more nuanced reality. Growth is still strong, yet profitability is under pressure, costs are climbing, and competition is intensifying. That doesn't break the thesis -- but it does make MercadoLibre a riskier stock than it was a year ago.
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MercadoLibre is growing nicely
Start with the positives. MercadoLibre is still expanding at a pace that most global tech companies would envy. In the second quarter of 2025, net revenue rose 34% year over year to $6.8 billion, driven by nearly 37% growth in gross merchandise value (GMV) on a forex-neutral basis. The company now counts more than 71 million unique buyers, a 25% increase from the prior year.
Its fintech arm, Mercado Pago, is also scaling impressively. The credit portfolio jumped 91% year over year to $9.3 billion, while short-term default rates improved from 8.2% a year ago to 6.7%. Customer adoption is broadening as well: Mercado Pago had 68 million monthly active users, many of whom are using it not just for e-commerce but also for everyday transactions, savings, and credit.
Those numbers reinforce a key point: MercadoLibre's ecosystem is sticky. The combination of marketplace, logistics, and payments keeps users engaged and competitors at bay. For a company operating in 18 countries in Latin America, that kind of scale is formidable.
MercadoLibre is doubling down on investment
At the same time, MercadoLibre is doubling down on reinvestment in key markets Brazil, Mexico and Argentina, estimating an investment of around $13 billion in 2025. Those dollars will go into the development of logistics hubs, technology upgrades, and expanding its payments infrastructure.
In the long run, these investments are essential. Faster deliveries make the marketplace more competitive, better payment rails deepen fintech adoption, and new technology supports the company's scale.
But in the short run, they add to costs -- and make MercadoLibre more exposed to macroeconomic volatility.
But margins are coming under pressure
But growth hasn't come without trade-offs. Profitability was the soft spot in Q2 2025. Net income of $523 million analyst expectations, and operating margin slipped to 12.2% from 14.3% a year earlier.
The culprit was primarily shipping. Facing mounting competition in Brazil -- particularly from Shopee and Temu -- MercadoLibre slashed its free-shipping threshold from 79 reais to 19 reais (roughly $3.40). The move worked, boosting volumes and engagement, but it also hurt margins. Moreover, logistics and shipping costs will likely remain elevated in the near term as the company works to defend its share.
While this move has largely helped the tech company keep customers coming back, it underscores a bigger risk: In markets where consumer purchasing power is limited, price sensitivity is high. If MercadoLibre has to lean on subsidies and free shipping continuously, it could put sustained pressure on its long-term profitability.
In other words, margins could remain depressed -- or even declining further in the coming quarters.
And there are other challenges ahead
Latin America itself adds another layer of complexity. Inflation, currency swings, and political shifts remain part of the equation. The Argentine peso continues to be a headwind, while Brazil and Mexico -- though offering scale -- are also highly competitive markets.
Speaking of competition, Shopee has overtaken MercadoLibre by order volume in Brazil, relying on subsidies and gamified shopping to win cost-conscious consumers. Temu, owned by PDD Holdings, is flooding the region with ultra-cheap goods shipped from China. Meanwhile, Nubank is expanding aggressively in digital finance, challenging Mercado Pago's dominance.
Put together, these pressures make MercadoLibre's execution even more critical. It's not enough to grow; the company must grow efficiently and defensively. The silver lining is that Latin America is a vast market, so many players can compete and still do well in the long run.
What it means for investors
So, is MercadoLibre still a solid growth stock? The answer is yes -- but with caveats.
The opportunity remains massive. Latin America's e-commerce penetration is still relatively low compared to developed markets, and digital payments adoption has plenty of room to grow.
The moat is intact. MercadoLibre's scale, logistics network, and fintech flywheel are powerful advantages.
But the risks are higher. Margin pressure, rising reinvestment, and a more challenging competitive landscape make the path forward less predictable.
MercadoLibre isn't broken. But it's no longer the simple growth story it was five years ago.
For long-term investors, the company still represents one of the best ways to play Latin America's digital transformation. The difference now is that execution risk sits front and center -- and that means investors must actively track the company's performance in the coming quarters.
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Lawrence Nga has positions in PDD Holdings. The Motley Fool has positions in and recommends Amazon and MercadoLibre. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nu Holdings Ltd.

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