To The Moon

Banking on Brilliance South of the Equator

I’ve been tracking Nu Holdings for a while now, and if there’s one word that keeps popping up, it’s this: unstoppable. This isn’t your average fintech flirtation—Nu is reshaping what banking means for millions in Latin America. But while everyone’s buzzing about customer growth and shiny app interfaces, I think there’s a deeper story here. A smarter, quieter revolution that could make Nu one of the most compelling long-term investments of the decade.

At the heart of it, $Nu Holdings Ltd.(NU)$ isn’t just adding users—it’s unlocking financial access in a region where over 120 million people remain unbanked. Think about that. It’s not about stealing market share—it’s about creating it from scratch. When someone gets their first bank account through Nu, they’re not just making a transaction; they’re making a commitment. That kind of emotional and practical stickiness is incredibly rare—and incredibly valuable.

Bridging the unbanked: Nu lights up Latin America's future

From Viral Growth to Operational Mastery

The numbers speak volumes. From 33 million customers at the end of 2021 to over 114 million by 2024. But what’s more impressive isn’t just the raw growth—it’s the consistency and efficiency behind it. Nu’s active user rate has risen to 83%, a strong indicator that this isn’t just app download fluff. People aren’t just signing up—they’re staying.

And here's where it gets juicy. Despite adding tens of millions of new users, Nu’s average monthly cost to serve each customer? Still just $0.80. That kind of efficiency would make any CFO swoon. Meanwhile, gross margins have quietly climbed from 36% to 46%, and GAAP profitability was achieved in 2023. By 2024, earnings per share were already up 30%. So no, this isn’t a cash-burning start-up chasing vanity metrics. It’s a scalable, data-driven machine.

Nu’s growth engine hasn’t just been about adding users — it’s been about keeping them. With over 114 million customers and an activity rate consistently above 83%, this isn’t a leaky bucket. It’s a lock-in machine.

Millions join, and most actually stay. That's rare

Data Is the New Currency

Nu’s not just sitting pretty on its user base—it’s using it. Every swipe, tap, and transfer feeds a powerful AI-driven backend. This means smarter credit assessments, faster product iterations, and ultra-personalised financial tools. Traditional banks, with their ancient IT infrastructure, can only watch and sigh as Nu iterates weekly while they’re still waiting on Q4 system updates.

That cloud-native tech stack? It’s more than just buzzwords—it’s a weapon. It gives $Nu Holdings Ltd.(NU)$ the agility to launch new features rapidly and the scalability to expand without blowing up costs. Competitors, meanwhile, are busy duct-taping legacy systems together and praying for stability.

Beyond Brazil: The Empire Expands

Let’s talk geography. Brazil may be Nu’s stronghold, but it’s already planting flags in Mexico and Colombia. And early signs suggest the model travels well. With high adoption rates echoing Brazil’s early days, Nu’s expansion playbook is working. This diversification reduces concentration risk while opening up even more fertile ground.

And don’t forget the ecosystem. Nu’s not just about checking accounts anymore—it’s branching into lending (secured and unsecured), insurance, investment (NuInvest), even crypto and e-commerce. More products mean deeper relationships. Deeper relationships mean more data. More data means better risk pricing. It's a beautiful feedback loop.

Undervalued? Let’s Talk Numbers

Growth without monetisation is hype. But Nu’s turning that corner — fast. Average revenue per customer is rising steadily, and total revenue is up 50% YoY. This is what scaling with discipline looks like.

More users. More revenue. More often

Right now, $Nu Holdings Ltd.(NU)$ sports a market cap of $51.19 billion, with trailing twelve-month revenue of $5.51 billion. That puts the price-to-sales ratio around 6.3x. Not cheap, you say? Let’s add some context. With a profit margin nearing 36% and ROE sitting comfortably above 28%, the fundamentals more than justify a premium. Plus, the forward P/E sits around 21—modest, especially when analysts are forecasting 32% annual revenue growth and 27% EPS growth through 2027.

In fact, if Nu were based in Silicon Valley and not São Paulo, it might already be trading at double the valuation. But hey, more opportunity for us contrarians.

Nu's ecosystem: stylish, seamless, and scaling like a fintech rocket

Slow and Steady Wins the Fintech Race

Here’s something even most analyst reports gloss over: Nu’s customer acquisition costs are actually declining as it scales. Yes, declining. Thanks to strong brand loyalty, social proof, and a powerful in-app referral engine, Nu is growing organically in ways traditional banks could only dream of. It’s like watching a rocket fuel itself mid-flight.

Meanwhile, its IPO price? Just under $9. Today it trades around $10.84. Not exactly nosebleed territory. Especially not when the 12-month analyst target hovers around $14.27.

So, is this the perfect entry point? Maybe. Maybe not. But here’s the smarter play:

Don’t Try to Time It. Nu Your Way In.

This is not a straight-line story. There will be currency swings, political hiccups, and macroeconomic drama—welcome to Latin America. But revolutions are rarely smooth. And Nu is a revolution.

The best approach? Dollar-cost averaging. Build your position slowly, methodically. Let Nu’s long-term trajectory work for you while short-term volatility works against those trying to trade headlines.

Because if $Nu Holdings Ltd.(NU)$ keeps executing—and all signs suggest it will—this might just be the smartest fintech bet you're not making big enough.

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