Nu Holdings (NYSE:NU), a digital banking provider in Latin America, closed Thursday at $15.06, down 9.55%. The stock moved lower as investors reacted to Q4 and full-year 2025 results, focusing on cost structure, credit-risk trends, and margin signals while reassessing near-term valuation. Trading volume reached 143.7 million shares, about 216% above its three-month average of 45.5 million shares. Nu Holdings IPO’d in 2021 and has grown 46% since going public.
How the markets moved today
The S&P 500 slipped 0.53% to finish Thursday at 6,909, while the Nasdaq Composite fell 1.18% to close at 22,878. Within digital banking, industry peers SoFi Technologies closed at $19.1 (-0.98%) and Ally Financial ended at $41.93 (+1.06%), showing a mixed reaction across the group.
What this means for investors
Nu reported excellent earnings yesterday afternoon, but saw its stock drop nearly 10% today. After Nu’s stock more than quintupled from its low in 2022 to its high earlier this year, I think the drop is more related to overly lofty market expectations than to anything wrong with its actual earnings.
In Q4, Nu grew revenue, net income, and deposits by 45%, 50%, and 29%. Its active customer count also rose 15% to 131 million users, while its average revenue per active customer jumped 15%. Trading at 17 times forward earnings with an ROE of 28%, Nu remains a reasonably priced growth stock to consider, especially if investors believe it can land a banking charter in the U.S. and succeed with its global expansion plans.
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Ally is an advertising partner of Motley Fool Money. Josh Kohn-Lindquist has positions in Nu Holdings and SoFi Technologies. 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.
