3. Nu Holdings Ltd. (NYSE:NU)
Year-over-Year Revenue Growth in FQ3 2023: 61.5%
Year-over-Year Revenue Growth in FQ4 2023: 57%
Year-over-Year Revenue Growth in FQ1 2024: 66.7%
Number of Hedge Fund Holders: 63
Nu Holdings Ltd. (NYSE:NU) offers a digital banking platform, spending solutions, mobile payment solutions, and more. On May 15, Susquehanna raised the price target on Nu Holdings Ltd. (NYSE:NU) to $14 from $12 and kept a positive rating.
Nu Holdings Ltd. (NYSE:NU) is one of the best up and coming stocks to buy as it has demonstrated robust customer acquisition and retention capabilities across its key markets, especially in Brazil and Mexico. As of Q1 of 2024, the company reported a total customer base of 99.3 million, marking a 26% year-over-year increase. This growth accentuates Nu’s position as a leading digital banking platform in Latin America, with impressive figures in Mexico, where the customer base reached 6.6 million, growing by 106% year-over-year. Moreover, Nu Holdings Ltd. (NYSE:NU) has achieved significant financial milestones. In Q1 2024, the company reported revenues of $2.7 billion, up 66.7% year-over-year. This growth was supported by increased customer engagement as it achieved a 30% year-over-year growth in average revenue per active customer, which reached $11.4. The company maintains a highly efficient operating model with a low cost-to-serve per active customer standing at $0.90. Nu Holdings Ltd. (NYSE:NU) also plans to increase its product offerings and market penetration. Its strategy includes increasing its product offerings such as secure lending initiatives in Brazil and leveraging advanced technologies like real-time payments and AI. These initiatives aim to refine customer experience and capture additional market share in the competitive fintech landscape.
In the first quarter, 63 hedge funds racked up shares of Nu Holdings Ltd. (NYSE:NU) with stakes amounting to $5.56 billion. This is compared to 54 with positions worth $4.54 billion in Q3 of 2023. As of March 31, Warren Buffett’s Berkshire Hathaway is the most significant shareholder of the company and has a position worth $1.278 billion.
Baron FinTech Fund stated the following 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. “
