Latest news with #Nubank
Globe and Mail
14 hours ago
- Business
- Globe and Mail
Can Nubank Repeat Its Brazilian Success in Mexico and Beyond?
The rapid expansion of Nu Holdings Ltd. NU in Brazil has set a high bar, but replicating that momentum in Mexico may prove more complex. Although Nubank Mexico launched with a more aggressive rollout than its Brazilian counterpart, growth metrics suggest a slower trajectory. When Nubank reached 10 million users in Brazil, it was growing at a robust 20% quarter over quarter. In contrast, Nubank Mexico is currently expanding at a more modest 10% quarterly pace, implying a timeline of nearly two years to double its customer base, compared to just one year in Brazil. However, regulatory tailwinds might change the equation. New banking licenses in Mexico could unlock access to payroll loans, currently dominated by a few legacy banks, and enable Nubank to offer deposit insurance. These advancements would not only diversify Nubank's revenue streams but also strengthen consumer trust, a crucial factor in financial services adoption. Yet the road ahead is still rocky. Mexican incumbents have had a front-row seat to Nubank's disruptive rise in Brazil. This has given them ample time to fortify their defenses, upgrade digital offerings and safeguard their customer base. Unlike in Brazil, where traditional banks were caught off guard, Mexican institutions are preemptively countering Nubank's market entry, likely slowing its path to dominance. In summary, while Mexico presents promising regulatory and market potential, Nubank may struggle to recreate the explosive growth it experienced in Brazil. Future success will depend on both strategic execution and the ability to navigate entrenched competition in newer markets. Peer Pressure? While NU continues to surge ahead in Latin America, U.S.-based peers like SoFi Technologies SOFI and Block XYZ are taking different routes to growth. SoFi is focusing on deepening customer relationships through bundled financial services like lending, investing and banking. Its strategy seems to emphasize lifetime value over rapid user expansion. Meanwhile, Block is sharpening its dual ecosystem approach, serving both individual users through Cash App and small businesses via Square. While both SoFi and Block are evolving steadily, NU's pace and scale of customer acquisition in emerging markets underscore a distinct momentum that sets it apart in the global fintech landscape. NU's Price Performance, Valuation & Estimates The stock has rallied 18% year to date, underperforming the industry 's 22% growth. From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 18.88, well above the industry's 9.2. It carries a Value Score of D. The Zacks Consensus Estimate for NU's second-quarter 2025 earnings has been on the decline over the past 60 days. NU stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nu Holdings Ltd. (NU): Free Stock Analysis Report SoFi Technologies, Inc. (SOFI): Free Stock Analysis Report Block, Inc. (XYZ): Free Stock Analysis Report
Finextra
4 days ago
- Business
- Finextra
Nubank introduces recurring bill payments on Pix
Nubank announces the launch of Automated Pix, a new option to pay recurring bills with convenience and security, available to customers starting June 16. 0 The new feature will be accompanied by the 'Search Upcoming Bills' feature, which will give customers complete freedom to choose how and when to pay - whether fully automatically or in a facilitated manner, with alerts and simple one-click approvals directly in the app. The 'Search Upcoming Bills' feature is ideal for customers who prefer to review their bills before each payment, helping them maintain financial control throughout the month with autonomy. The feature will be available gradually next week. 'We believe that empowering our customers is essential. With 'Search Upcoming Bills', we combine the convenience of Automated Pix with the freedom to decide how to pay bills. The tool notifies customers about bills that follow the recurring billing model. This allows them to decide whether to authorize the payment with a click or decline it', explains Maristela Calazans, Nubank's general manager of the Nu Account. With Automated Pix, customers can easily set up payments for recurring bills such as water, electricity, internet, condo fees, gym memberships, school fees, and streaming services using Pix. The security of Automated Pix follows the high standards already adopted by Nubank for other Pix features, including confirmation via PIN for each manually authorized payment, real-time fraud and suspicious key alerts, Street Mode (Modo Rua), which limits transactions outside secure networks, daily Pix limits controls and a 'trusted contacts list' that can be set up. How to use Automated Pix with Search Upcoming Bills Starting the Payment: The billing company will provide a QR Code or the option to copy and paste the Pix key for payment. By scanning the code or pasting the key into the Nubank app, the customer will automatically identify if the payment is enabled for Automated Pix. Setting up Automated Pix: If the payment allows Automated Pix, the customer will see a screen with the account details. There will be two options: Enable Automated Payment: Confirm and register the payment to be made automatically monthly. Pay upon approval ('Search Upcoming Bills' feature): Choose to receive monthly alerts to approve payment on the due date with just one click. Automated Payment: By opting for automated payment, Nubank will charge the amount on each month's due date without needing any new action. Payment upon approval: If the customer prefers to receive alerts, Nu will send notifications for the customer to approve the payment with a click and confirm their security PIN. Full Management: Customers can manage all Automated Pix payments at any time in the Payment Assistant area of the app. There, it is possible to pause, cancel, or modify authorizations as needed.
Finextra
4 days ago
- Business
- Finextra
Pix adds recurring payments
Brazil's Pix instant payments platform has added a recurring payments feature. 0 Pix Automático will facilitate recurring charges that let users authorise periodic debits automatically, without the need for authentication for each transaction. The central bank predicts the feature will be useful for a host of options, including schools, colleges, gyms, condominiums, social clubs, health plans, streaming services, news portals, subscription clubs, and FS firms. Launched in late 2020, Pix has proved a runaway success, used by 170 million people, 91% of the country's adult population. At the same time, 60 million Brazilians don't have credit cards, leaving a significant potential market for the new Pix Automático. According to vendor Ebanx, it could unlock $30 billion in online recurring payments within two years. Ebanx has already integrated the recurring payments feature, with global streaming platforms and SaaS companies among the first to tap into it. PPRO and digital bank Nubank have also been quick off the mark with their own integrations coming onstream. Pix saw a 52% increase in transaction volume in 2024, according to central bank data. By the last quarter of the year, it accounted for nearly half of all non-cash payment transactions in Brazil.
Yahoo
7 days ago
- Business
- Yahoo
New Brazil Fiscal Package Weighs In on Nu Holdings (NU)
We recently published a list of . Nu Holdings Ltd. (NYSE:NU) is one of the worst-performing stocks on Thursday. Nu Holdings declined by 5.4 percent at intraday trading on Thursday at $12.07 apiece as investor sentiment was dampened by uncertainties in Brazil's new fiscal package. The plan, which includes slapping higher taxes on financial firms, heavily weighed on investor sentiment, including Nu Holdings Ltd. (NYSE:NU). While the bill remains under scrutiny by the Congress, the measure would require the financial sector to pay higher duties on their net profits if it passes into law. According to the Brazilian government, the overall measure is expected to generate R$40 billion annually. A wide angle shot of a team of bankers and financial advisors evaluating an investment portfolio on a touchscreen monitor. In the first quarter of the year, Nu Holdings Ltd. (NYSE:NU) grew its net income by 74 percent to $557.2 million from the $378.8 million in the same period last year. Revenues rose by 40 percent to $3.2 billion driven by a 62 percent expansion in the interest-earning portfolio. 'In Brazil, nearly 30 percent of adults consider Nu their primary bank, confirming significant market share gains and value delivery. With disciplined boldness, we're capitalizing on vast growth opportunities by responsibly expanding, strategically reinvesting, and scaling our proven flywheel model,' said Nubank CEO David Velez. 'We are confident that by continuously enhancing our offerings and market position, Nubank will capitalize on the long runway of growth ahead of us and deliver enduring value to both customers and shareholders,' he added. While we acknowledge the potential of NU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. Sign in to access your portfolio
CNBC
31-05-2025
- Business
- CNBC
Morgan Stanley says buy these five stocks soon that are set to rally
There's a slew of stocks that have a lot more room to run, according to Morgan Stanley. The firm says overweight-rated companies like Nvidia have plenty of upside and remain top picks in June. Others include: Nubank , Sallie Mae , Seagate and Coupang. Seagate The tech data storage company is just too attractive to ignore, analyst Erik Woodring, wrote following Seagate's analyst day in late May. "The inflection in compute will drive exponential growth in storage demand, and we see STX as a still underappreciated play on this theme at just 7.5x our peak EPS," he wrote. And there's a whole host of more positive catalysts to come for top pick Seagate, too, the firm said. "Tech leadership, premium margins, robust FCF generation, and strong cap returns support EPS upside and multiple re-rating from here," he added. The stock is also an undervalued play in the data center space, too, Woodring says. Shares of Seagate are up 36% this year. Coupang The South Korea e-commerce company was recently named a new top pick at the firm. "Competitors have scrambled to respond, but Coupang's market share gains have continued without a blip," analyst Seyon Park wrote. The firm also raised its price target on the stock to $32 per share from $27 as Coupang is firing on all cylinders. "The company continues to execute well, is relatively insulated from tariff risk, and a beneficiary of a weaker USD [US dollar]," he said. Meanwhile, shares are up 27% and remain compelling. "Valuations also look favorable compared to relevant peers, " he went on to say. Nubank The LatAm bank is a share gainer and a top pick at the firm, according analyst Jorge Kuri and team. "We think the market continues to significantly underestimate Nubank's ability to scale profitably — especially through deeper cross-sell in Brazil," they wrote. The firm says Nubank has a differentiated offering for consumers as a one stop shop for all banking needs. "From leading in primary account relationships and salary deposits, to capturing the lion's share of consumer intent in credit card, personal loan, and payroll loan applications and balance transfers, Nubank is clearly far outpacing incumbent and digital peers," he said. The stock is up almost 16% this year, but Kuri says shares have plenty more room to run. "Nubank leads in both reach and relevance," he said succinctly. Seagate "The inflection in compute will drive exponential growth in storage demand, and we see STX as a still underappreciated play on this theme at just 7.5x our peak EPS. Tech leadership, premium margins, robust FCF generation, and strong cap returns support EPS upside and multiple re-rating from here. ... .A (still) underappreciated play on data growth; PT increases to $140 and we reinstate STX as our Top Pick." Coupang "The company continues to execute well, is relatively insulated from tariff risk & a beneficiary of a weaker USD. Valuations also look favorable compared to relevant peers. ... .Competitors have scrambled to respond, but CPNG's market share gains have continued without a blip. ... .Despite the market uncertainties this year, we are quite comfortable CPNG can deliver on its growth targets, while also being a beneficiary of a weaker US dollar." Nvidia "NVIDIA is putting digestion fears fully to rest, showing acceleration of the business other than the China headwinds around growth drivers that seem durable. Everything should get better from here. Reiterate OW, Top Pick in semis. ... .Bear case is fading and inference trajectory is durable; stay with the story. ... .Most of the themes we have been focused on played out through this quarter." Sallie Mae "SLM remains our Top Pick. ... .SLM exploring potential alternatives to whole loan sales, such as JVs, which we think could drive multiple expansion on more consistent asset-light cash flow. ... .Once we gain further clarity on government policy, we expect SLM will formally issue a range of estimates on how much additional volume it can drive in 2H26/2027." Nubank "We think the market continues to significantly underestimate NU's ability to scale profitably — especially through deeper cross-sell in Brazil. ... .From leading in primary account relationships and salary deposits, to capturing the lion's share of consumer intent in credit card, personal loan, and payroll loan applications and balance transfers, NU is clearly far outpacing incumbent and digital peers. ... .Nubank leads in both reach and relevance."
