We recently compiled a list of the 10 Stocks Record Biggest Double-Digit Drop on Friday. In this article, we are going to take a look at where Nu Holdings Ltd. (NYSE:NU) stands against the other stocks.
The stock market ended the trading week in a bloodbath, with major indices registering losses amid concerns over a slowing economy and sticky inflation.
The Dow Jones fell by 1.69 percent, the S&P declined by 1.71 percent, while the tech-heavy Nasdaq nosedived by 2.20 percent.
Ten stocks mirrored a broader market decline, posting double-digit losses, with sentiment for most of the companies dampened by dismal earnings performance.
To come up with Friday’s biggest losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A wide angle shot of a team of bankers and financial advisors evaluating an investment portfolio on a touchscreen monitor.
Nu Holdings Ltd. (NYSE:NU)
Nu Holdings Ltd. (NYSE:NU) dropped for a fifth straight day on Friday, losing 18.89 percent to finish at $10.82 each as investors shunned news of better earnings performance while focusing on the decline in its net interest margins.
Net income in the fourth quarter of the year expanded by 85 percent to $552.6 million from $298.2 million in the same period last year, while revenues increased by 24 percent to $2.989 billion from $2.404 billion year-on-year.
Net income for the full year more than doubled to $1.972 billion from $983 billion, as revenues increased by 43 percent to $11.5 billion from $8.03 billion.
Net interest margin, however, became a concern after contracting for the second straight quarter, by 17.7 percent, mainly due to foreign exchange volatility and its deposit strategy in Mexico and Colombia.
Nu Holdings Ltd. (NYSE:NU) grew its customer base by 4.5 million in the fourth quarter, bringing its full-year tally to 114.2 million, or an increase of 22 percent year-on-year.
Overall NU ranks 4th on our list of Friday’s biggest losers. 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 doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as 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.