Nu Holdings stock drops 36% as investors weigh Brazil election
- Nu Holdings stock has declined 36% from its recent high.
- The share price drop followed the re-election of Brazilian President Luiz Inácio Lula da Silva.
- Nu reports strong growth with an 86% activity rate in Brazil.
- The stock is trading at a price-to-earnings multiple below 11.
- Nu Holdings will host its first investor day on December 8.
Nu Holdings share price has fallen 36% from its recent high following market disappointment regarding the Brazilian election. The stock price dropped sharply last week after Brazil did not elect a candidate viewed as market-friendly.
Nu stock has fallen 36% from its recent high, and its share price fell sharply last week after Brazil did not elect a candidate viewed as market-friendly.
Lula re-elected to fourth term in Brazil
Luiz Inácio Lula da Silva has been the president of Brazil since 2023. He has just been re-elected, which marks his fourth overall term in office.
Strong performance metrics in second quarter
The activity rate for Nu Holdings rose to 83.5% in the second quarter, reaching 86% in Brazil. Early delinquencies fell from 5% to 4.8% during the same period.
The net interest margin rose to 12.4%, which is the highest level in more than a year.
Expansion into US and user growth
Nu Holdings is expanding into several new markets, including the United States, to create new revenue streams. The company continues to gain millions of new users.
Its average revenue per active customer also continues to rise.
P/E ratio below 11 signals potential value
Nu Holdings stock trades below a price-to-earnings multiple of 11 for the coming year.
An article compares American Express and Nu as potential better buys among financial stocks.
Motley Fool maintains recommendation for Nu
The Motley Fool Stock Advisor analyst team did not include Nu Holdings in its list of the 10 best stocks to buy now on November 1, 2026.
Despite this exclusion, The Motley Fool holds positions in and recommends Nu Holdings. The firm follows a disclosure policy regarding these recommendations.
Investor day scheduled for December 8
Nu Holdings will hold its first-ever investor day on December 8.
Nu Mexico operations and background
Nu operates as the largest digital bank in Mexico, providing credit cards and accounts. The subsidiary, legally named NU BN Servicios Mexico, is a privately held company based in Ciudad de México.
It operates within the financial services industry. The company maintains a presence on Facebook, Twitter, Crunchbase, Instagram, and YouTube, with 258,300 followers on LinkedIn.
Customers can contact the firm via email at ayuda@nu.com.mx or by phone at +52 55 9225 2622 and 800-099-1133. Technology utilized by the bank includes Amazon Quicksight and RDS, as detected in 2026.
The company completed an acquisition of Akala on September 1, 2021. It previously received funding from Invus Opportunities and TeleSoft Partners in a venture round on January 1, 2016.
Nu Holdings profile as a digital bank
Nu Holdings operates as a digital bank based in Brazil. The company has experienced rapid growth.
It is a former Buffett stock. The bank is currently entering new regions and expanding its operations.
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