Is NU stock a good buy now?
Nu Holdings — a digital financial services company in Latin America — is trying to fight the financial complexity that exists in the region today. Nu's unique approach to tackling the digital financial services market has seen major success. Nu Holdings’ high-profile backers include Warren Buffett’s Berkshire Hathaway and Tencent Holdings. Should you buy NU stock now?
Is NU stock a good investment?
Nu Holdings has been experiencing hyper-growth. When companies with this kind of profile are publicly listed, they tend to be priced primarily based on the growth potential of their technology offerings, rather than their ability to generate revenue or profit.
In Q3 2021, it grew its revenue 208% year over year to $481 million. Its net loss for the period was just $34 million, which grew just 5% year over year, so the company's path to profitability looks very strong.
Nu Holdings' main strengths are its gigantic number of active customers (about 50 million), along with the excellent execution of its digital banking platform and its strong brand recognition in Latin America. The region is an emerging market with enormous potential.
Is NU stock a good buy now?
The first Wall Street ratings of Nu Holdings after its IPO have been bullish, even though the stock's overall performance hasn't been great. Based on 10 analysts offering price targets for the next 12 months, the consensus has labeled NU a buy. The average price target is $12.25, implying an upside of 31% based on the current per-share price of $9.34 at last check.
How do I buy Nu stock?
Investors wanting to buy shares of Nu Holdings' stock can begin with a brokerage account, such as a standard brokerage account or a retirement account like an IRA. You can choose to open with a discount brokerage company or a full service broker. Full service brokers provide advisory and portfolio management services but charge higher commissions. If you are a Brazilian investor, you can register at Nu Invest to trade NU stock.
