We got here throughout a bullish thesis on Nu Holdings Ltd. on International Fairness Briefing’s Substack by Ray Myers. On this article, we’ll summarize the bulls’ thesis on NU. Nu Holdings Ltd.’s share was buying and selling at $17.04 as of January twelfth. NU’s trailing and ahead P/E had been 33.03 and 21.23 respectively in accordance with Yahoo Finance.
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Nu Holdings (Nu), Latin America’s main digital financial institution, introduced that it has filed for a U.S. nationwide financial institution constitution with the Workplace of the Comptroller of the Foreign money (OCC), marking a important first step towards increasing operations throughout all 50 states. This transfer positions Nu to raised serve current prospects and faucet into underserved segments within the U.S., significantly low-income and Latin American communities.
Whereas approval will take years, involving rigorous OCC scrutiny of administration, financials, compliance, and operational readiness, Nu’s sturdy stability sheet, regulatory expertise throughout three nations, and high-caliber management, together with former OCC and central financial institution executives, make approval seemingly.
A U.S. banking constitution would permit Nu to challenge credit score and debit playing cards, loans, and different monetary merchandise, although deposit-taking would require further FDIC licensing, doubtlessly through partnerships with FDIC-insured banks, a typical fintech technique. Nu’s growth technique mirrors its profitable Latin American mannequin: providing no-fee accounts, aggressive bank cards, excessive deposit curiosity, loans, funding merchandise, crypto providers, and low-cost remittances. These choices are anticipated to attraction to the estimated 5 million unbanked adults and tens of tens of millions of low-income People, a complete addressable market of roughly 60 million.
Leveraging cloud-based infrastructure, AI, and automation, Nu maintains a structural value benefit over legacy U.S. banks, enabling scalable, low-cost operations. Whereas important regulatory, political, and operational hurdles stay, the U.S. market represents a multibillion-dollar alternative, doubtlessly replicating Nu’s Latin American development trajectory. Though significant income are years away, this submitting underscores Nu’s long-term ambition to increase globally, lengthen monetary inclusion, and set up itself as a dominant low-cost digital financial institution, setting the stage for transformative development over the following decade.
Beforehand we coated a bullish thesis on Nu Holdings Ltd. (NU) by Ray Myers in Could 2025, which highlighted the corporate’s sturdy income development, increasing buyer base, and worthwhile scale in Latin America. The inventory has appreciated roughly 29.77% since then, reflecting continued execution. The thesis nonetheless stands as Nu grows regionally. Ray Myers shares an identical perspective however emphasizes Nu’s U.S. growth through a nationwide financial institution constitution.
