NU News & Events

TikTok is seeking approval from the Brazilian central bank to operate as a lending and payments fintech, Marcela Ayres of Reuters reports, citing two people with direct knowledge of the matter. TikTok has applied for two licenses with the Brazilian central bank, one allowing it to operate as an "electronic money issuer," offering prepaid accounts for users to hold balances, receive funds and make payments within its app, sources told Reuters. The second license would make it a "direct credit company," allowing TikTok to lend its own capital or act as a platform connecting borrowers and lenders, the people added. Reuters says TikTok is attempting to run a playbook popularized by Nu Holdings (NU), the country's largest digital bank. Other names in Brazil's fintech sector include StoneCo (STNE), PagSeguro (PAGS), and XP Inc. (XP).

Mixed options sentiment in Nu Holdings (NU), with shares up 16c, or 1.16%, near $14.36. Options volume relatively light with 17k contracts traded and calls leading puts for a put/call ratio of 0.16, compared to a typical level near 0.79. Implied volatility (IV30) dropped 0.79 near 42.7,and above the 52wk median, suggesting an expected daily move of $0.39. Put-call skew flattened, suggesting a modestly bullish tone, following an upgrade to Buy at UBS.

Mixed options sentiment in Nu Holdings (NU), with shares up 76c, or 5.42%, near $14.70. Options volume relatively light with 33k contracts traded and calls leading puts for a put/call ratio of 0.51, compared to a typical level near 0.73. Implied volatility (IV30) dropped 2.29 near 42.41,and above the 52wk median, suggesting an expected daily move of $0.39. Put-call skew steepened, indicating increased demand for downside protection, following an upgrade to Buy at UBS.

Morgan Stanley believes Nu Holding is "uniquely positioned" to build one of the largest and most valuable banking franchises in Latin America. The company has "world-class technology, exceptional customer satisfaction, market-leading pricing, and strong unit economics," the analyst tells investors in a research note. The firm thinks the market is significantly underestimating Nu's ability to scale profitably. Nu could reach a $100B valuation by the end of 2026, up from $70B today, contends Morgan Stanley.