We recently published a list of 10 Stocks on Jim Cramer’s Radar Amid Market Volatility. In this article, we are going to take a look at where Nu Holdings Ltd (NYSE:NU) stands against other stocks on Jim Cramer’s radar amid market volatility.
Jim Cramer in a latest program on CNBC commented on the reasons behind the recent selloff and said the market correction isn’t always healthy. He continues to believe the key reason behind the latest market drop was President Trump’s volatile tariff policies.
“I think Trump’s core thesis is right, our trading partners have taken advantage of our country for decades and it’s worth trying to set that right, but it’s a very big but, Trump’s approach has been way too erratic, it’s terrified both the stock market and the broader economy, not just the stock market, the broader economy. Most of the substantive tariff news comes in the form of postings on Truth Social, they come fast and furious, they’re incredibly important, they’re incredibly contradictory. These posts involve hundreds of billions of dollars if not trillions of dollars and more importantly hundreds of thousands of jobs, including yours. The Mercurial postings, the scatter shot approach to trade policy is the approximate cause of the correction.”
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For this article we picked 10 stocks Jim Cramer talked about in his programs recently. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Nu Holdings Ltd (NYSE:NU)
Number of Hedge Funds Investors: 54
Jim Cramer recently said on CNBC that he was “wrong” to be bullish on Nu Holdings Ltd (NYSE:NU).
“I’ve got to tell you, I came out hot on this one. I really liked it. I’ve been wrong. I don’t know why. I thought it was just a really cool idea. I mean, it’s, you know, I think maybe it’s like digital banking. I thought it was the way to go. So far, I’m wrong. I’m not. I can’t. I’m not going to repeat my bullishness. It would be a mistake.”
Baron FinTech Fund stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its Q4 2024 investor letter:
“Nu Holdings Ltd. (NYSE:NU) is a digital bank with operations in Brazil, Mexico, and Colombia. Shares fell after the company reported a lower net interest margin and tightened underwriting criteria for unsecured loans. We see these impacts as temporary and tied to the company’s growth. The margin contraction was largely driven by rapid deposit growth in Mexico and Colombia, an intentional part of Nu’s client acquisition strategy. The tighter underwriting standards are a necessary part of the ongoing process of adjusting lending criteria to new clients. We remain confident in Nu’s growth prospects as the company is addressing key pain points faced by banking customers across the region, including high fees, poor customer service, and limited access to financial products. We believe its superior product offering will lead to continued share gains in the large and growing Latin American market.”
Overall, NU ranks 7th on our list of stocks on Jim Cramer’s radar amid market volatility. While we acknowledge the potential of NU, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
