Is Nu Holdings Stock a Buy?
Nu Holdings (NYSE: NU) dominates the Brazilian banking market and has a massive growth opportunity across Latin America to serve unbanked and under-banked populations.
The Brazilian fintech has taken investors on a volatile ride since its 2021 initial public offering (IPO) as it grapples with growth in the emerging-market economy. In the last year, Nu stock has surged 53% higher. As Nu aims to replicate its success across other regions of Latin America, is now the time to buy?
For years, Brazilians grappled with a broken banking system that saw five banks control 80% of Brazil's financial-system assets. Operating as an oligopoly, these banks charged customers outrageous fees, which former Brazilian finance minister Paulo Guedes called a "cartel" that demanded "absurd" interest rates on loans.
Source Fool.com
