NEW YORK, July 23, 2026, 06:07 (EDT)
- Nu gained 6.8% in three sessions, with trading volume nearly double its 65-day average.
- The Brazil license introduces no additional capital or liquidity requirements.
- After reaching 15 million customers and breaking even in the first quarter, Mexico’s banking transition proceeds.
Shares of Nu Holdings Ltd. NYSE:NU dipped 0.5% to $14.44 in Thursday’s premarket, following a three-session climb of 6.8%. U.S. cash markets were shut at the dateline.
The surge came after banking decisions in Brazil and Mexico. The short-term effects on their earnings are not the same.
The takeover in Brazil is linked to a banking name regulation. Nu stated its current licenses are sufficient for the business structure. The additional license imposes no further capital or liquidity requirements.
This restricts the near-term financial impact. Mexico provides a more straightforward monetization benchmark.
Nu has received approval to operate as a bank in Mexico. The company must finalize the conversion within 30 calendar days starting July 10.
Trading activity was robust, with approximately 402 million shares traded between Monday and Wednesday. This figure was close to double Nu’s 65-day average volume.
The surge offset a 1.2% decline from the previous week. Nu ended Wednesday at $14.51, marking a 6.8% rise from Friday’s closing price.
Nu has reached a deal to acquire Banco Porto Real, subject to approval from Brazil’s central bank. The company stated that there will be no changes to operations for customers.
Founder and CEO David Vélez said Brazil “remains our main focus.” Nu is set to invest R$45 billion domestically throughout the year. Nu International
Nu serves over 15 million customers in Mexico with deposits totaling $5.9 billion. The business achieved break-even during the first quarter.
“Mexico is a key market for Nubank,” Vélez stated. Nu anticipates $4.2 billion in investment by 2030.
The valuation disparity increases the challenge. As of Wednesday’s close, data indicates a significant difference.
| Company | Wednesday close | Five-day change | 2026 change | Trailing P/E |
|---|---|---|---|---|
| Nu Holdings | $14.51 | up 5.22% | down 13.32% | 22.37x |
| PagSeguro Digital Ltd. NYSE:PAGS | $9.67 | up 5.68% | up 0.31% | 7.18x |
| StoneCo Ltd. NASDAQ:STNE | $11.36 | up 1.43% | down 23.19% | 4.55x |
| Itaú Unibanco Holding S.A. NYSE:ITUB | $8.48 | up 2.17% | up 18.44% | 11.62x |
Nu is valued at 22.4 times its trailing earnings, almost double Itaú’s ratio and over three times PagSeguro’s. StoneCo, in comparison, has a multiple under five.
PagSeguro outpaced Nu’s five-day rise by a small margin. As a result, licensing alone does not fully account for the recent rally.
Nu’s performance helps justify the premium. Revenue in the first quarter surpassed $5 billion, net profit was $871 million, and the return on equity stood at 29%.
Indicators of credit quality were varied. Early-stage delinquencies increased to 5.0%. The risk-adjusted net interest margin declined by 100 basis points, and loss allowances rose by 33%.
Nu will stay within Mexico’s conversion window next week. Investors are also awaiting the Federal Reserve meeting set for July 28-29. Shifts in rates and the dollar have potential to impact growth stocks across Latin America.
Risks: The acquisition in Brazil is subject to regulatory clearance. Last quarter saw an increase in loss allowances, and Nu’s valuation continues to be high. Slower monetization or possible delays could reverse some of the latest gains.
The share price now reflects more than just regulatory certainty. Nu needs to translate its banking license into revenue while maintaining its 29% return on equity.
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