Nu Holdings ($NU) – Finally opening a position 📈
At the beginning of April I wrote about $NU and explained why I’ve had this fintech stock on my long-term watchlist. At that time I had a planned entry set at $12.50.
On May 15, 2026 the stock fell even lower and I opened a position at $12.05. It currently represents approximately 1% of my portfolio. My current target remains at least $16.
From my perspective this position offers a very interesting risk/reward ratio.
$NU further benefits from several long-term trends at once. Digital banking in Latin America is still growing rapidly and a large portion of the population remains underserved by traditional banks. Nubank is also continuing to grow its customer base, increase user activity, and gradually expand its offering of higher-margin financial services.
One of the biggest advantages of the company is its extremely scalable and low-cost digital model. Compared to traditional banks burdened by an expensive branch network, Nubank operates much more efficiently and can acquire customers at much lower cost.
From a valuation perspective the stock started to look very interesting to me again around $12. Sentiment toward fintech and emerging markets has cooled significantly after previous corrections, while the company itself continued to show strong operational growth.
In comparison with competitors, I think $NU has a very interesting position.
Traditional Latin American banks often run on outdated systems and adapt more slowly. On the other hand, companies like $SOFI operate mainly in the US, where the competitive environment is very different. Compared to global fintech players like $PYPL or Block ( $XYZ ), I see Nubank having even greater potential for long-term customer growth due to the low penetration of banking services in key markets.
I also view the gradual improvement in profitability and monetization positively. The company is no longer perceived solely as a “growth at any cost” story. Investors are increasingly focusing on operational efficiency and the long-term potential for profitability.
Of course risks remain. The biggest include:
- deterioration of the economic situation in Latin America,
- currency volatility,
- regulatory changes,
- increasing competition,
- or a potential deterioration in the quality of consumer loans.
Fintech companies are also very sensitive to overall market sentiment. If investors were to start withdrawing more significantly from growth stocks again, volatility could return very quickly. Still, I believe that from current levels around $13 the stock has a realistic path to higher valuations over the medium term.
And one more small note about $SOFI.
I’m still patiently waiting for my planned entry around $14.20. If the stock never returns there and continues to rise without me, then congratulations to all current holders and I wish you a successful upward journey.
How do you view the future of digital banks in Latin America? Do you currently prefer fintech companies like $NU and $SOFI, or rather traditional banks with more stable profitability?
In my portfolio I have both $NU and $SOFI. The reason is clear to me: each operates in a different market — $NU, as you wrote, is a leader in Latin America; they’re really pushing and growing at a decent pace. I bought $SOFI gradually around $7, so I have an established position and I don’t intend to add at the current price. We’ll see what stance the new Fed chair takes, but in the long term I see both $SOFI and $NU as very interesting opportunities.