New York, June 10, 2026, 09:50 EDT
- Nu Holdings stock was last at $12.04, up 1.3% on Wednesday morning. Shares opened lower but bounced back from the prior close.
- NU is bouncing back, but it’s still working through a sharp drop. Zacks on Wednesday pointed out the stock is off 22% in three months and down 30.5% over the last six months.
- Investors face a new $1 billion buyback as credit costs rise and the CFO change has led to analyst downgrades last week.
Nu Holdings Ltd. shares traded up Wednesday morning, giving the parent of Nubank some relief after a difficult run. NU last changed hands at $12.04, over Tuesday’s close of around $11.88. Shares opened at $11.77 and have ranged between $11.70 and $12.09. Market cap stood near $57.5 billion.
Nu stock is moving today, but not because of new earnings. Investors are focused on the fight between new buyback plans and strong growth on one side, and worries about credit quality, new leadership and margins on the other. Zacks put it simply Wednesday: shares are down 30.5% over six months. MarketScreener’s live view still had NU off almost 28% for 2026, even with Wednesday’s early bump.
Buybacks are the key support for bullish bets here. Nu disclosed in a June 4 SEC filing that its board signed off on a plan to buy back up to $1.0 billion in Class A shares over a one-year period, running from June 4, 2026, through June 3, 2027. Share repurchases let companies buy their own stock and can cut the total share count, which ups each share’s claim on future profits if carried out.
Nu said it plans to fund the buyback with cash from retained and future earnings. Investors are watching that point to see if the company is sending back extra capital from a stronger base—rather than just dialing back spending in Brazil, Mexico, Colombia or the United States.
Nu’s first-quarter report gives bulls and bears room to argue. Revenue hit $5.32 billion, up 42% from last year on a FX-neutral basis. Net income came in at $871 million, 41% higher. Return on equity was 29%.
Nubank CEO David Vélez is betting on artificial intelligence to drive growth. “We are not adding AI to banking, we are rebuilding banking around AI,” Vélez said in the company’s May results statement. Nubank’s AI Private Banker features had more than 15 million monthly active users. The bank said its NuFormer models are running in production for credit-card decisions in Brazil and Mexico and also for unsecured lending in Brazil. Nu International
Investors are watching not just Nu’s growth, but what it costs to get there. The company’s credit loss allowances jumped 33% from the previous quarter, reaching $1.79 billion in Q1. Risk-adjusted net interest margin dropped to 9.5%, down from 10.5% in Q4.
That’s where the bear case kicks in. Nu’s 15-to-90-day non-performing loan ratio, a measure of loans just starting to go overdue, moved up to 5.0% from 4.1% in the last quarter. The company said that lines up with normal first-quarter seasonality, but said it’s also a result of its push into riskier segments.
Nu’s top job is shifting again. On June 1, the company said Rob Livingston, a former CFO at Visa for North America, will step in as chief financial officer July 13. He’s taking over from Guilherme Lago, who moves into a special adviser role until August 31. Nu said the move won’t affect Nubank’s business model, risk appetite or strategy for the long term.
BofA Securities wasn’t convinced. The firm cut Nu to Underperform from Neutral and slashed its price target to $10 from $16 after news of the CFO change, Investing.com reported. Analyst Mario Pierry cited the “timing of the transition” as a fresh source of uncertainty, saying Nu is heading into a tougher credit cycle in Brazil even as it grows in Mexico, Colombia, and the U.S. Investing.com
Susquehanna cut Nu to Neutral from Positive on June 3, even as MarketScreener’s analyst page kept a bullish consensus in place: 21 analysts, a mean Buy call, average target price at $18.39, with the lowest at $10. The spread sums it up — investors still like the franchise, but there’s less room for mistakes.
The buyback could end up being about optics, not support, if credit costs keep climbing or Brazil’s consumer cycle sours. Nu flagged in its filing that the repurchase plan doesn’t commit to any set amount of stock and could get halted, changed or dropped. If risk-adjusted margins stay squeezed as the new CFO steps in, today’s rally might just be a breather, not a real shift in where the stock is headed.
The next question for the stock is execution. Investors are watching to see if Nu will use the share buyback authority and still keep enough capital for growth. The next credit update also matters. It will show if the early-stage delinquencies that jumped in Q1 were a seasonal blip or the start of worse problems.
