Nu is a Strong Buy!
Updated 2030 Valuation Model!
Welcome to Global Equity Briefing, my twice-weekly investing newsletter.
I am Ray, a passionate investor and equity analyst. Today, I am returning to one of the highest-quality companies in the world.
I firmly believe that Nu is one of the best opportunities in the market because they are constantly underestimated.
Nu was supposed to reach saturation and face fierce competition from incumbents in Brazil. Yet, they are set to add 10M customers in Brazil in 2025, despite already having 101.8M in 2024.
Some analysts were skeptical that Nu’s success in Brazil could be replicated in Mexico and Colombia. Yet, in 2025, Nu is set to grow the number of customers in Colombia by 80% to over 4M and Mexico by 40% to 14M.
Next, Nu skeptics on Twitter told me, “Good luck monetizing these poor people,” or that “defaults will explode”. Yet, ARPU has grown like clockwork, and defaults are flat, despite a slow economy in Latin America.
And now, skeptics are saying that “Nu has no business expanding to the US”.
Not to pick on Brett specifically, but I believe he is 100% wrong, and Nu is playing a game they can win. I think critics are completely misunderstanding the game Nu intends to play. I expanded on this in my report on Nu applying for a US license, but in short, Nu will go after the underserved low-income Latin American community, paying 300% APR on payday loans. Then they will target different demographics and move up the value chain.
Recently, Nu’s CEO, David Velez, revealed that the US application process is going “much faster than they imagined”.
In today’s report, I will give you:
3 key reasons why I believe Nu is one of the best long-term opportunities on the market.
Analysis of current valuation and analyst estimates.
And conclude with a 2030 valuation model.
Let’s begin.
