New York, May 24, 2026, 12:02 (EDT)
- Nu Holdings ended Friday at $12.73, off 3.3% for the session. Shares still gained about 4.4% from a week earlier.
- U.S. markets are closed Sunday and Monday for the weekend and Memorial Day. The next chance to trade NU shares comes on Tuesday.
- Investors go into the shortened week looking at solid growth from Nubank set against bigger credit-loss allowances and a lower risk-adjusted margin.
Nu Holdings Ltd. shares slipped late in the week, leaving investors another day to see if the digital bank from Brazil can keep up its post-earnings gains or if sellers are stepping in around the $13 mark.
The NYSE stock ended Friday’s session at $12.73, down 3.27%. The shares traded up to $13.26 during the day. Despite the drop, they were still up about 4.4% from last Friday’s $12.19 close, thanks to Wednesday and Thursday gains. The NYSE calendar shows U.S. markets are shut for Memorial Day on Monday. Trading will pick up again Tuesday.
Nu is under the microscope as a test for Latin American fintech growth, with investors looking for proof that its rapid loan growth can last in a tougher credit cycle. The stock is still trading well under its May 1 close of $14.44, even after posting a record profit for the first quarter.
Nu, parent to Nubank, said earlier this month its first-quarter managerial total revenue hit $5.32 billion, up from $3.37 billion a year ago. Managerial revenue is based on the company’s own adjustments to its accounting numbers. IFRS total revenue came in at $4.97 billion. Net income reached $871.4 million versus $557.2 million the prior year, according to a filing.
Nu Holdings CEO David Vélez said the quarter finished with “more than 135 million customers” and for the first time, revenue came in above $5 billion. Brazil made up over 115 million customers, with more than 15 million in Mexico and nearly 5 million in Colombia, the company reported. Business Wire
Nu was not the only stock hit on Friday. MercadoLibre, which runs its own digital finance unit Mercado Pago, slipped too. Shares of StoneCo and PagSeguro, both with Brazil payments exposure, also ended down. The broader weakness in Latin American fintech and payments names weighed, so Nu’s slide looked like part of the group move rather than just Nu news.
Bulls still point to more users, more products per user, and low digital costs. Nu reported its efficiency ratio was 17.6% in the first quarter, down from 19.9% in the fourth quarter. That ratio tracks operating costs as a percent of revenue; lower numbers mean better efficiency for a bank.
Credit is looking tough for Nu. The company’s 15-90 day NPL ratio, an early sign of future bad loans, hit 5.0% last quarter. That’s up from the previous quarter. Loans overdue by more than 90 days dropped to 6.5%. Credit-loss allowances climbed 33% from the previous quarter to $1.79 billion. Risk-adjusted net interest margin slipped again, now at 9.5% from 10.5%. That measure takes out expected credit losses from the lender’s loan spread.
Chief Financial Officer Guilherme Lago told the earnings call that provisions do “not indicate any sign of credit deterioration,” pushing back on concern about credit quality. He called the balance sheet “fairly robust.” Investing.com
Doubts about Nu are specific. Tito Labarta at Goldman Sachs asked management about Nu’s exposure to lower-income borrowers, saying that was “part of the concern.” BTG analyst Eduardo Rosman added that local Brazilian investors seem “much more constructive” than foreign investors, flagging a divide in how the market views Nu. Investing.com
PCE inflation data is due this week, in a holiday-shortened stretch that could test markets, Reuters’ Morning Bid said. The gauge is closely watched by the Federal Reserve. A higher reading could keep rate hike worries in focus for growth stocks, but Nu’s main operating risks are still centered in Brazil, Mexico and Colombia.
Investors could start to worry that Nu’s growth is being driven by rising credit costs, as the company leans further into unsecured lending and higher-risk customers. If provisions don’t level off or risk-adjusted margins don’t bounce back after the first quarter, markets might discount Nu’s record revenue and profit, seeing them as less attractive beneath the surface.
Traders are watching Tuesday’s open for the next signal. If shares get back above Thursday’s $13.16 close, it could mean buyers are still pushing the rebound after earnings. But a drop below Friday’s $12.71 low may shift attention to the May 15 low at $11.78 and keep the credit risk questions in play.
