Nu Holdings (NYSE: NU)The Latin American digital banking provider closed Thursday at $15.06, down 9.55%. The stock moved lower as investors reacted to fourth-quarter and full-year 2025 results, focusing on cost structure, credit risk trends and margin signals while reassessing near-term valuations. Trading volume reached 143.7 million shares, about 216% higher than the three-month average of 45.5 million shares. Nu Holdings debuted in 2021 and has grown 46% since going public.
this S&P 500 Index It closed down 0.53% at 6,909 points on Thursday, while Nasdaq Composite Index It closed down 1.18% at 22,878 points. In the field of digital banking, industry peers Sophie Technology Closed at $19.1 (-0.98%) Woori Financial It closed at $41.93 (+1.06%), with mixed reactions across the group.
Nu reported stellar results yesterday afternoon, but its shares are down nearly 10% today. After Nu’s stock price more than quintupled from its 2022 lows to its highs earlier this year, I think the decline has more to do with market expectations being too high than actual earnings going wrong.
In the fourth quarter, Nu’s revenue, net profit and deposits increased by 45%, 50% and 29% respectively. Its number of active customers also grew 15% to 131 million users, while average revenue per active customer increased 15%. With a forward P/E ratio of 17 and a return on equity of 28%, Nu remains a reasonably priced growth stock worth considering, especially if investors believe it can obtain a banking license in the U.S. and successfully implement its global expansion plans.
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Ellie is an advertising partner with Motley Fool Money. Josh Kohn-Lindquist serves at Nu Holdings and SoFi Technologies. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
Stock Market Today, February 26: Nu Holdings shares fall after investors react to earnings Originally published by The Motley Fool
