Key insights
- The post discusses NU Holdings' strong financial performance, including revenue growth and margin improvement. However, it questions whether the current growth and profitability can be sustained, especially with expansion outside Brazil, to justify the current valuation. This raises concerns about the risk/reward profile for US investors, suggesting a slightly bearish outlook.
NU Holdings looks financially strong on most fronts. Revenue growth is still high, margins improved a lot over the last few years, EPS keeps growing, dilution is relatively controlled for a growth company, and the overall business execution looks impressive. The main thing I keep asking myself is whether the current growth and profitability trajectory can continue long enough to justify the valuation long term — especially as they expand more aggressively outside Brazil. Curious how other people here see the risk/reward at current levels.