10 Stocks That Will Make You Rich In 2025

5. Nu Holdings Ltd. (NYSE:NU)

Analysts Upside Potential: 49.33%

Nu Holdings Ltd. (NYSE:NU) is a Brazilian company that operates primarily as a digital bank through its platform, Nubank. The company provides various financial services including credit and debit cards, interest earnings accounts, investment products, loans, and insurance options. It has two strategic moats over its competitors. The first is its entirely online operations which helps keep costs low and allows it to offer services at reduced fees compared to traditional banks. The second edge is its special focus on Latin America which has limited access to banking services.

Nu Holdings Ltd. (NYSE:NU) has been focused on three main principles namely customer growth, increasing revenue per customer, and efficient operating costs. During the fiscal third quarter of 2024, the company achieved a total of 110 million customers globally, marking a 56% increase from 70 million two years ago. This growth is primarily driven by strong additions in Brazil, where they added an average of 1.1 million new customers each month, reaching nearly 99 million customers. Moreover, the company also added 1.2 million customers in Mexico, bringing the total to 8.9 million.

Financially speaking the bank generated revenues of $2.9 billion, reflecting a 56% year-over-year increase. This growth was fueled by successful cross-selling and up-selling strategies, as well as new product introductions. Some of its recent new product launches include NuCel, a mobile phone service in Brazil, aimed at simplifying telecommunications for customers. It is also developing a marketplace platform that allows customers to access various products and services directly through its app and is venturing into the travel sector.

Here’s what Baron FinTech Fund stated regarding Nu Holdings Ltd. (NYSE:NU) in its first quarter 2024 investor letter:

“Nu Holdings Ltd. (NYSE:NU) is a digital bank with operations in Brazil, Mexico, and Colombia. Shares appreciated during the quarter after the company reported strong balance sheet growth and improving margins. New product launches and expansion in newer countries are yielding favorable results. Nu also benefited from inclusion in the MSCI Brazil Index, which prompted buying from passively managed funds. We continue to own the stock because Nu is disrupting the financial services industry in Latin America with its digital distribution and intense focus on user experience. The company has grown to serve over 90 million customers in less than 10 years, largely through word-of-mouth referrals. We believe the company’s superior product offering will drive continued share gains in large and growing markets. “