NU Should I Buy
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Nu Holdings Ltd. (NU) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 to invest. The company's strong revenue growth, expansion into new markets, and positive analyst sentiment make it a compelling investment opportunity. Despite some technical indicators being neutral, the overall fundamentals and growth trajectory align with long-term investment goals.
The MACD is positive at 0.22, indicating bullish momentum, but it is contracting. RSI is at 78.921, which is neutral. Moving averages are converging, suggesting indecision. Key resistance levels are at 15.393 and 15.802, with support at 14.732 and 14.071. The pre-market price is $15.48, slightly above R1, indicating potential upward momentum.
Nu Holdings is expanding into the U.S. market with a new bank charter, has achieved 57% revenue growth in Q4 2023, and maintains a 49% compound annual growth rate in revenue. The company has over 60% of Brazil's adult customer base and is growing in Mexico and Colombia. Analysts have recently upgraded the stock with higher price targets, citing strong earnings growth.
EPS and gross margin dropped to 0 in Q4 2025, which may raise concerns about profitability despite strong revenue growth. Technical indicators are mixed, with no clear short-term trend.
In Q4 2025, revenue increased by 56.45% YoY to $4.56 billion, and net income rose by 61.48% YoY to $892.38 million. However, EPS and gross margin dropped to 0, indicating potential challenges in operational efficiency.
Analysts have a positive outlook on NU. UBS upgraded the stock to Buy with a price target of $17.60, citing attractive valuation and earnings growth. CICC initiated coverage with an Outperform rating and an $18 price target. Morgan Stanley raised its price target to $21, highlighting the company's long-term growth potential.
