Shares of Nu Holdings (NU 3.59%) sank 15.6% in February and continued to fall in March, according to data from S&P Global Market Intelligence. After reporting earnings late in the month, investors were disappointed about the uncertainty with the banking giant's expansion strategy into the United States, as well as the continued macroeconomic uncertainty that has rattled markets. The stock is still up 43% in the past year.
Here's why Nu Holdings stock fell in February, and whether it is a buy for your portfolio right now.
NYSE: NU
Key Data Points
Betting on a new market
Nu Holdings operates Nu Bank, a digital banking giant that has taken the Brazilian, Mexican, and Colombian markets by storm. It now has 131 million customers as it looks poised to dominate Latin American consumer banking.
Q4 2025 results showed more of the same impressive growth figures. Customers grew 15% year-over-year, while revenue per active customer rose 45% on a constant-currency basis, leading to total revenue growth of 45% in the period (active customers are not the same as total customers).
In 2025, Nu Bank generated $16.3 billion in revenue and $2.87 billion in net income. It is still keeping the gas pedal down as it hopes to accelerate growth in its newer markets of Mexico and Colombia, which is eating into its true profit potential.
Long-term, the company plans to expand into the United States, replicating its digital banking model to serve Latin American customers living in the country. It recently sponsored Inter Miami, showing its dedication to the country's expansion. There is also room to expand to other Latin American markets such as Argentina, Chile, or Uruguay.
So why did the stock fall? Well, it likely had to do with uncertainty about expanding into the United States, where banking competition is much fiercer than in Mexico or Brazil. Investors were likely not pleased with this news, as macroeconomic factors could be hurting its core regions, such as cartel violence in Mexico. Combined with the broad market dip, it is no surprise that Nu Holdings stock has slumped.
Image source: Getty Images.
Time to buy Nu Holdings stock?
After dipping, Nu Holdings' stock is now trading at a price-to-earnings ratio (P/E) of 25. This is expensive for a bank, but investors should remember that Nu Holdings is still heavily reinvesting to expand its presence and product portfolio in its core regions, giving it a huge runway to grow, especially when combined with the new geographies it plans to enter.
That could help net income grow at a rapid rate in the years to come, making Nu Holdings stock a buy on any dips.
