Nubank faces challenges in replicating Brazilian success in Mexico, but aggressive expansion sets it apart.

From Nasdaq: 2025-06-19 12:59:00

Nu Holdings Ltd. is facing challenges in replicating its Brazilian success in Mexico. While growth in Brazil was rapid at 20% quarterly, Mexico is only growing at 10%, potentially taking nearly two years to double its customer base. Regulatory changes could boost Nubank Mexico’s prospects, but competition is fierce.

In contrast, U.S.-based fintech companies like SoFi and Block are pursuing different growth strategies focused on customer relationships and dual ecosystems. NU’s aggressive expansion in emerging markets sets it apart, despite its underperformance in the stock market compared to industry peers.

NU’s stock has seen an 18% year-to-date rally but trades at a higher valuation than the industry average. The company’s earnings estimates have declined recently, and it carries a Zacks Rank #3 (Hold). Potential investors can access Zacks’ full list of top stock picks for a nominal fee to explore investment opportunities further.



Read more at Nasdaq: Can Nubank Repeat Its Brazilian Success in Mexico and Beyond?