Nu Holdings (NU) Plunges 0.87% as Strong Q2 Earnings Contrast with Selloff Amid Latin America Risks

Nu Holdings (NU) fell 0.87% on Thursday, marking its second consecutive day of declines as the share price hit its lowest level since September 2025. The stock experienced an intraday drop of 2.35%, reflecting a broader selloff despite recent institutional interest and analyst upgrades. The two-day decline has eroded 1.07% from its recent levels, signaling investor caution ahead of key market developments.

The recent stock weakness contrasts with Nu’s strong second-quarter financial performance, including a 42% year-over-year rise in net income to $637 million and a 4.1 million customer addition, pushing total users to 122.7 million. Analysts have highlighted the company’s cost efficiency, with per-customer service costs falling to $0.80, and revenue growth driven by expanding credit and digital offerings. However, the market appears to be discounting these positives amid broader macroeconomic concerns and regulatory uncertainties in Latin America.

Institutional activity has shown mixed signals, with large purchases from entities like Canada Pension Plan Investment Board and Orbis Allan Gray offsetting smaller reductions from other investors. Despite this, recent analyst upgrades—such as Bank of America raising its price target to $16 and Susquehanna to $17—have not translated into sustained buying momentum. The stock’s valuation metrics, including a P/E ratio of 32.06, suggest it remains undervalued relative to peers, but short-term volatility persists as investors weigh growth potential against regional risks.

Strategic expansion plans, including rumored acquisition discussions and international ambitions, remain a focal point for long-term optimism. However, regulatory hurdles and economic instability in key markets like Brazil and Argentina could temper near-term gains. With a consensus price target of $17.06 implying a 15.7% upside, the stock’s path forward will likely depend on execution of its growth strategy and macroeconomic stability in Latin America.