NEW YORK, August 21, 2026, 09:32 EDT — Nu Holdings Ltd. NYSE:NU has seen roughly $4.9 billion in market value erased since the close following its earnings release. Shares ended Thursday at $14.21, falling 2.74%, with volume at 80.5 million shares.
The pullback has wiped out 78.5% of the earnings surge seen on August 14. Nu nevertheless posted its first quarterly profit topping $1 billion. However, investor attention has shifted back to concerns over credit risk and the expenses linked to growth, tempering enthusiasm for the earnings result.
Shares of Nu were at $14.30 as of 09:32 EDT on Friday, rising roughly 0.6% shortly after the start of trading. The uptick was modest, trailing losses over the previous four sessions. Trading volume on Thursday reached 1.05 times the average of the past three months.
| Price path | Close / snapshot | Daily move | Signal |
|---|---|---|---|
| Aug. 13, pre-results | $13.93 | +2.73% | Level set ahead of earnings announcement |
| Aug. 14, earnings day | $15.23 | +9.33% | $6.3 billion increase in market cap |
| Aug. 17 | $14.74 | −3.22% | First downward move |
| Aug. 18 | $14.35 | −2.65% | Continuation of selloff |
| Aug. 19 | $14.61 | +1.81% | Moderate recovery |
| Aug. 20 | $14.21 | −2.74% | Just 21.5% of post-earnings gain remains |
| Aug. 21, 09:32 EDT | $14.30 | +0.6% | Early trading indicator |
Nu delivered robust results for the quarter. Founder and CEO David Vélez stated the company is “now generating more than a billion dollars in quarterly net income.” Revenue climbed to almost $5.9 billion, and net income increased by 49% to reach $1.1 billion. Nu second-quarter release
| Second-quarter measure | 2Q26 result | Change / context |
|---|---|---|
| Customers | 139 million | Quarter gain of approximately 4 million |
| Gross revenue | Nearly $5.9 billion | Rises 39% from a year earlier, FX neutral |
| Net income | $1.1 billion | Jumps 49% compared to prior year |
| Return on equity | 33% | Highest profitability level |
| Risk-adjusted NIM | 12.4% | Gains 290 basis points on quarter |
| Credit portfolio | $39.4 billion | Up 37% year over year |
| Deposits | $45.3 billion | Increases 18% year over year |
The credit figures illustrate the shift in valuation. Early delinquencies decreased by 16 basis points, reaching 4.8%. In contrast, the share of loans past due over 90 days increased 35 basis points to 6.9%. Nu said the majority of that increase was due to seasonal migration.
The compensation for that risk has also increased. Net interest margin was 22.9%, and credit costs dropped 9% quarter-on-quarter to $1.7 billion. As a result, the discussion now focuses on sustainability rather than present profits.
| Analyst | Firm | Recommendation | Target | Date |
|---|---|---|---|---|
| Thiago Batista | UBS | Buy | $18, previously $17 | Aug. 20, 2026 |
| Jorge Kuri | Morgan Stanley | Buy | $21 | Aug. 17, 2026 |
| James Friedman | Susquehanna | Hold | $16, up from $13 | Aug. 14, 2026 |
| Mario Pierry | Bank of America Securities | Sell | $10 | Aug. 14, 2026 |
| Kyle Peterson | Needham | Buy | $19 | Aug. 14, 2026 |
Wall Street’s outlook remains broadly positive. The consensus price target from 22 analysts stands at $18.69, representing a 31.5% premium over Thursday’s closing price. The analyst range, from $10 to $23, covers over $62 billion in implied equity value. This gap highlights notably varied assumptions regarding credit quality and international monetisation.
| Target case | Price | Move from $14.21 | Implied market value | Value change |
|---|---|---|---|---|
| Lowest published | $10.00 | −29.6% | $48.3 billion | −$20.3 billion |
| Consensus average | $18.69 | +31.5% | $90.3 billion | +$21.6 billion |
| Consensus median | $19.00 | +33.7% | $91.8 billion | +$23.1 billion |
| Highest published | $23.00 | +61.9% | $111.1 billion | +$42.5 billion |
The initial earnings responses varied by company. On August 14, shares of StoneCo Ltd. NASDAQ:STNE dropped nearly 6%, MercadoLibre Inc. NASDAQ:MELI advanced around 1%, and Inter & Co Inc. NASDAQ:INTR remained mostly flat. Nu climbed approximately 10%.
Risks: Early trading on Friday may see swift price reversals. Movements in Brazilian rates and currency, along with higher-risk lending, could increase credit losses. More rapid growth in Mexico and Colombia may push up costs ahead of revenue gains.
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