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Nu Holdings Ltd. recently announced it had applied for a national bank license in the United States, a move that would allow it to offer a full suite of banking and digital asset services to U.S. customers if approved.
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This push marks Nu’s first step to become a truly global financial platform, leveraging its Latin American digital banking foundation to enter one of the world’s largest and most competitive financial markets.
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We’ll examine how this application for a U.S. bank license may expand Nu’s growth runway and reshape its investment outlook.
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To own Nu Holdings, I think you need to believe its technology-driven banking approach will successfully transition from Latin America to the US, unlocking new growth despite tougher competition and higher regulatory scrutiny. The recent US bank license application represents a potential new catalyst, granting Nu access to a broader customer base and diversifying its revenues, but also brings the near-term risk of increased compliance costs and execution challenges; for now, the main short-term drivers and threats remain Nu’s pace of US expansion and the profitability impact of entering new, complex markets. Among recent announcements, the appointment of a reconstituted US board, including former regulators and experienced executives, stands out as crucial for Nu’s US banking ambitions, aligning governance with heightened compliance expectations and investor focus on execution capability amid global expansion. Yet in contrast to its innovation story, investors should be aware that Nu already faces rising operational and compliance costs as it scales internationally and…
Read the full narrative on Nu Holdings (it’s free!)
Nu Holdings’ outlook anticipates $33.0 billion in revenue and $6.1 billion in earnings by 2028. Achieving this would require a 78.1% annual revenue growth and an increase in earnings of $3.8 billion from the current $2.3 billion.
Uncover how Nu Holdings’ forecasts yield a $17.29 fair value, a 7% upside to its current price.
With 45 fair value estimates from the Simply Wall St Community ranging from US$9.10 to US$59.35, views differ substantially on Nu’s worth. As Nu’s international expansion increases operational complexity, you may want to explore why opinions about its future diverge so widely.
Explore 45 other fair value estimates on Nu Holdings – why the stock might be worth 43% less than the current price!
