Should You Buy, Sell, or Hold Nu Holdings Now That Its Earnings Are Out?
Nu Holdings reported strong earnings earlier this month.
Overview
Nu Holdings (NYSE: NU) has been an incredible long-term success story. Founded in 2013, the online-only bank now has nearly 140 million customers across just three countries: Brazil, Colombia, and Mexico. Year-over-year revenue growth has consistently been in the double digits, sometimes exceeding 100%.
Some analysts worry that the fintech's biggest days of growth are behind it. After all, the competition is catching on to Nu's asset-light business model. But a few key figures from the company's recent quarterly earnings announcement suggest that the fintech stock remains a long-term buy.
Details
As I detailed earlier this month, Nu is facing increased competition, but its competitive advantages continue to give it a durable edge. In recent years, competing banks have acquired more customers, but at the expense of declining credit quality and rising deposit costs. Meanwhile, Nu has been able to maintain high revenue and customer growth without sacrificing borrower quality or net interest margins.
Source
Originally published at www.fool.com.