I went to a soccer recreation over the weekend. Belief me, there’s an investing angle right here — I am not offsides. I caught the hometown Inter Miami CF crew taking up the visiting New York Crimson Bulls. It was the second recreation on the brand-new, freshly christened Nu Stadium.
I am guessing that the majority of my fellow 26,000 soccer followers within the stadium on Saturday night time aren’t totally certain what Nu is or does. Except they’re buyers — or Brazilian — that is comprehensible. Past the shiny Nu Stadium signal on the surface of the stadium or the regular stream of LED branding ribbons inside, there’s not quite a bit that somebody in Miami can do with dad or mum firm Nu Holdings(NYSE: NU). However all of this might change sooner fairly than later.
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Picture supply: Getty Photographs.
Latin American fintech shares aren’t just like the sleepy stateside pioneers meandering by single-digit income progress today. The area’s three largest fintech shares posted top-line progress between 45% and 65% of their newest quarters.
Nubank dad or mum Nu Holdings is the one within the center, rising its fourth-quarter income 57% for the ultimate three months of final 12 months. It is a pressure value acknowledging for buyers. Even with the long-lasting Lionel Messi enjoying for Inter Miami CF, the primary two video games at Nu Stadium resulted in attracts. Nu is enjoying to win. It wasn’t afraid to get Messi, and it isn’t afraid to get messy both.
It has been simply 12 years since Nubank launched its first product — a fee-free bank card — in Brazil. Immediately, 62% of that nation’s grownup inhabitants has a Nubank account. Most of Nu’s 131 million accounts are in its residence nation. It additionally has a smaller however quickly rising presence in Mexico and Colombia.
There was hypothesis on which Latin American stronghold can be its subsequent growth market, nevertheless it may not be in that area in any respect. Nu Holdings acquired conditional approval for its U.S. nationwide financial institution constitution in January. Two months later, it surprised the market by securing naming rights for a high-profile stadium that simply opened in Miami.
Like many Main League Soccer groups, there isn’t a scarcity of Latin American gamers enjoying for Inter Miami CF, and there’s no scarcity of Latin American followers. Nonetheless, with Nu now on the dear clock for naming rights, it is only a matter of time earlier than the U.S. turns into the fourth nation for the fast-growing fintech.
Nu Holdings inventory has greater than tripled during the last three years. Jaw-dropping progress has a humorous means of being rewarded on Wall Road. Income greater than doubled for 3 years by 2023. The highest-line jumps have slowed, however that is the place wholesome margins are coming into play because the platform will get stickier.
Nu’s buyer progress decelerated to fifteen% final 12 months, however income nonetheless rose 57% within the fourth quarter on the power of surging income per account. Common income per consumer clocked in at a file $15 a month, up from $11.10 a 12 months earlier. There may be energy in that scalability. It solely prices Nu roughly $0.80 per account per thirty days to service.
Internet revenue soared 62% within the fourth quarter. The $895 million in web revenue it generated in these last three months of 2025 works out to a web margin of 18.4%. Regardless of increasing past its flagship bank card to supply a broader portfolio of monetary merchandise over time, the branchless financial institution’s effectivity ratio has continued to enhance.
Paying up for stadium-naming rights in a rustic it hasn’t at the moment launched in but can be a dangerous wager for many firms. It is a rounding error for Nu and its huge margins. It is arduous to shake your head at such lavishness when Nu is cranking out a return on fairness of 33%.
Regardless of the inventory’s stellar run over the previous couple of years — and its robust progress — Nu Holdings might be cheaper than you suppose. You should buy Nu immediately for 18 instances this 12 months’s earnings and fewer than 14 instances subsequent 12 months’s analyst revenue goal.
Put one other means, three years in the past, you possibly can’ve purchased Nu inventory for 4 instances what it’s anticipated to earn subsequent 12 months. Lengthy-term buyers are inclined to win these video games.
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