I Said This Fintech Growth Stock Was Bottoming Out in June, and I Was Right

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Rick Munarriz, The Motley Fool

Fri, August 14, 2026 astatine 10:53 AM CDT 5 min read

Earnings play tin beryllium humbling, truthful I anticipation you let maine the accidental to boast erstwhile fixed the chance. The past clip I wrote astir Nu Holdings (NYSE: NU) -- connected June 3 -- the Latin American fintech was sliding. The genitor institution of Brazil's fast-growing NuBank was reeling from expert downgrades and mounting headwinds.

I argued that it wasn't excessively soon to telephone a bottommost connected the stock, the aforesaid time it deed a 52-week debased of $11.20. For now, I was right. Following weeks of upticks and a leap aft posting blowout results aft Thursday's marketplace close, Nu has jumped astir 40% from its June low.

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I conjecture it's clip for different bold prediction: Nu's bounce is conscionable getting started.

Someone excited oregon amazed by what's connected phone.

Banking connected a rebound

Nu Holdings has travel a agelong mode successful a abbreviated time. The integer banking level that launched successful Brazil conscionable a twelve years ago, successful the signifier of a no-fee recognition paper for mass-market users, present reaches much than 62% of the country's big population.

Thursday afternoon's fiscal update shows determination is inactive important maturation imaginable for Nu and its shareholders. The fintech speedster is present serving 138.9 cardinal accounts, a 13% summation implicit the past year.

That's decent, but here's wherever the communicative gets better: Revenue roseate 3 times faster successful the 2nd quarter, climbing 39% to $5.9 billion. Many factors are driving this top-line surge, but it yet comes down to Nubank customers leaning much connected the institution for their fiscal needs.

The enactment complaint keeps inching higher with each passing quarter. Purchase measurement continues to outpace relationship growth. Customer deposits person risen 18% implicit the past year. Its recognition paper and indebtedness portfolio is present 37% larger than it was a twelvemonth ago.

The effect is that the monthly mean gross per progressive lawsuit is present $17.10, a 22% leap implicit the past year. This has been the default mounting for that juicy metric, which has much than doubled implicit the past 4 years. The aforesaid tin beryllium said astir its accounts, and immoderate beauteous spectacular maturation starts to hap erstwhile you stack those 2 metrics connected apical of 1 another.

The communicative gets adjacent amended connected the bottommost line. It inactive costs Nu astir $1 a period to work an account. Scalability tin beryllium powerful, and this historically high-margin relation conscionable delivered its archetypal 4th of much than $1 cardinal successful nett income. Earnings surged 49% for the quarter. It easy exceeded expectations connected some ends of the income statement.

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