New York, June 17, 2026, 09:11 (EDT)
- Nu Holdings finished Tuesday at $12.72, gaining 2.33%. Shares were flat in early trading Wednesday.
- Citigroup moved to neutral. Credit losses, margins and the July CFO switch are back in focus after the downgrade.
- The $1 billion buyback and firm Q1 growth are helping the bull story, but investors are still looking for evidence that lending growth can keep up profits.
Nu Holdings (NU) looked set for a quiet open Wednesday after bouncing back the day before. Shares were indicated at about $12.74 premarket in New York. Nu closed Tuesday at $12.72, rising 2.33%. Earlier this week, Citigroup downgraded the stock to neutral from buy and trimmed its price target down to $13 from $18.
Shift in the stock is key, as investors now see it less as a simple growth play and more as a test for credit discipline. Citigroup, Susquehanna, and BofA Securities have recently updated ratings, showing analysts are watching margins and projected loan losses, not just customer growth.
S&P 500 and Nasdaq futures ticked up early Wednesday as traders waited for the Fed. The NYSE will keep normal hours from 9:30 a.m. to 4 p.m. ET, but with a Juneteenth holiday on Friday, the week has fewer regular sessions.
Nu is still growing. The company reported first-quarter revenue above $5 billion for the first time, net income up 41% to $871 million, and its customer count now over 135 million, with more than 115 million in Brazil. “Q1’26 was another strong quarter,” founder and CEO David Vélez said. He also pointed to 29% return on equity, which tracks profit against shareholder capital. Nu International
The board gave the green light to a new share buyback on June 4, signing off on up to $1 billion in repurchases through June 3, 2027. A buyback lets a company use cash to buy back its own stock, but Nu said it isn’t obligated to take any set amount.
But the risk is tougher to ignore now. Susquehanna analyst James Friedman pointed out operating margins dropped 760 basis points to 19.2% in Q1. He said more credit cards and unsecured loans added pressure. The company lifted credit loss allowances by 33% from the prior quarter, setting aside more cash for possible bad loans.
Competition is moving the same way. MercadoLibre’s Mercado Pago, which is one of the top digital finance players in the region, said it had 83 million monthly active users. Credit portfolio jumped 87% to $14.6 billion in the first quarter. Leandro Cuccioli, head of investor relations, told Reuters, “We are willing to sacrifice these short term profits because we think that the opportunity is worth it.” Reuters
Leadership changes are coming up for Nu. The company said Rob Livingston, most recently Visa’s CFO for North America, takes over as Nu’s CFO on July 13. He replaces Guilherme Lago, who steps into a special adviser role. Nu said this CFO change won’t affect its operating model, risk appetite, or long-term strategy.
The stock is hanging around the updated target analysts set. Shares will probably need more than just buyback chatter to move higher—lower credit risks, stable margins, and evidence that Brazil, Mexico and later U.S. growth doesn’t weigh on earnings would help.
