New York, June 3, 2026, 19:03 EDT
- Nu Holdings finished the session down 2.43% at $11.64, then lost more ground after the bell.
- Susquehanna and BofA downgraded the stock this week. Both pointed to margin pressure, credit risk, and the CFO change.
- Nubank said Rob Livingston, who had been at Visa, will step in as CFO on July 13, taking over from Guilherme Lago.
Nu Holdings Ltd. shares dropped on Wednesday, hit by a second analyst downgrade in as many days. The parent of Brazilian digital bank Nubank is facing investor questions after swapping its finance chief, as higher credit costs and sluggish profit growth continue to drag on the stock.
The shares finished the session at $11.64, off 2.43%. In late trading, the stock changed hands at $11.56. The New York Stock Exchange’s regular hours are 9:30 a.m. to 4 p.m. ET, with more trading possible until 8 p.m. ET. StockAnalysis
Timing is a factor. Nu is sticking to its growth story in Brazil, Mexico and Colombia as it gets ready to expand into more markets. But that’s become harder to value with questions on margins, a CFO change, and a tough session for U.S. stocks.
Susquehanna’s James Friedman lowered his call on Nu to Neutral from Positive and slashed the price target to $13 from $18. Friedman pointed to operating margins, which sank by 760 basis points to 19.2% in the first quarter. A basis point is equal to one-hundredth of a percentage point. Investing.com
BofA Securities cut Nu Holdings to Underperform from Neutral on Tuesday, dropping its price target to $10 from $16. The bank cited Guilherme Lago’s exit—he led the IPO process and handled investor relations—as a source of more uncertainty for Nu, which is pushing into new markets outside Brazil while facing a tougher credit environment. Investing.com
Nu announced June 1 that Rob Livingston, who was Visa’s North America CFO, is set to become chief financial officer on July 13. Lago will step into a special adviser role and help with the handover until Aug. 31. Nu said the transition won’t affect its operating model, risk appetite or long-term strategy.
David Velez, founder and CEO of Nubank, said the company’s main goals remain the same. He listed growth in core markets, artificial intelligence, and international expansion as priorities. Lago described now as the “right moment to step down.” Rob Livingston said he’s focused on capital allocation and “Nu’s next stage of growth.” Nu International
The drop wasn’t just about Nu’s leadership. Last month’s first-quarter report showed credit loss allowances climbed 33% from the prior quarter, reaching $1.79 billion. Risk-adjusted net interest margin slipped to 9.5% from 10.5%. Mziq API
Still, the report gave some reasons why investors are sticking with the stock. Nu posted quarterly revenue above $5 billion for the first time, with net income up 41% year-over-year to $871 million, and customer numbers jumped to 135.2 million. Velez used the release to say Nu is “rebuilding banking around AI.”
Banks in Brazil lagged on Wednesday, with Nu’s U.S. listing under pressure and both Itaú Unibanco dropping 3.4% and Banco Bradesco sliding 3.3%. The moves suggest worries across Brazilian financials, not just for one name.
Stocks struggled again. Wall Street closed in the red Wednesday. The S&P 500 slid 0.74% and the Nasdaq dropped 0.89%, according to Reuters, after higher oil prices and worries over the Middle East cooled risk appetite. Reuters
Downside is pretty straightforward. High credit provisions, capital tied up in Mexico and U.S. bets, or confusion around the CFO switch could eat into Nu’s growth premium even as it adds more customers. A steeper drop in Brazil credit quality would add to the pressure.
Analysts aren’t lined up on one side for now. MarketScreener has 21 analysts at a Buy consensus, with targets across a spread: average at $18.48, low at $10, which pretty much shows the split over Nu. Some see a fast-growing bank, but the path to steady margins is up for debate. marketscreener.com
