NU Stock could get a nice bump this week when the company announces earnings.
If you’re unfamiliar, Nu Holdings (NYSE: NU), is the largest digital banking platform in the world outside of Asia, boasting more than 100 million customers in Brazil, Mexico and Colombia. Technically, it’s the largest bank in Brazil by market cap. And the company has been getting very popular with the ultra wealthy.
Last quarter, Saudi Arabia’s sovereign wealth fund bought 1.18 million shares of the stock, and Japanese investment bank behemoth, Softbank, bought 2.3 million shares. That purchase increased its total holdings to more than 23 million shares. Warren Buffett owns about a billion dollars of the stock, too.
Smart Money Loves NU Stock
Indeed, NU stock is a favorite for that big institutional money. Other major players that own a large chunk of NU include…
- SC US (TTGP), LTD
- Capital Research Global Investors
- Baillie Gifford Company
- Berkshire Hathaway
- WCM Investment Management
- JP Morgan & Chase Company
- Jennison Associates
- Sands Capital Management
- Technology Crossover Management
- Blackrock
Those ten alone own a combined $14 billion worth of NU stock. And it’s worth noting that about 80% of the company is owned by institutions. Moreover, over the past 12 months, there have been 325 institutional buyers.
Indeed, analysts have been salivating. Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.The Best Free Investment You’ll Ever Make
According to MarketScreener, over the past year, analysts have regularly revised their sales forecasts upward, and over the past four months, analysts’ average price target has been revised upwards significantly.
The only thing concerning me with NU stock is that it’s trading pretty close to the top, even after last week’s market meltdown. And if we see Latin America take an economic hit later in the year, this could definitely pressure the stock.
I would also point out that NU has been growing at a record pace. It now actually boasts more than 100 million customers. If NU shows any indication of a slower pace in customer acquisition, it could be perceived as a negative. Although given how quickly NU has grown over the past year, any slowdown in customer acquisition would have to be significant.
If NU does deliver on earnings with revenue coming in at, or exceeding $2.78 billion, the stock could pop between 7% to 10%. Not bad.
Long-term, though, I’d be cautious about getting too bullish on the stock. Indeed, it’s a solid fintech/banking player, but the upside potential is limited. While a 10% gain is nice, that’s not really the kind of gain we look for here at Energy & Capital.
To be honest, if we’re not at least doubling our money, it’s not really worth our time. Which is why I’m actually so bullish on this new bitcoin loophole strategy that allows you to tap into the meteoric growth of bitcoin without actually having to own any of it.
This particular opportunity has already soared in value by more than 6,800%, turning a $5,000 stake into more than $348,200. That’s more than a quarter million dollars from just one $5,000 investment. I don’t know about you, but that makes me forget all about a 10% gain from NU stock. To a new way of life and a new generation of wealth… Jeff Siegel
@JeffSiegel on Twitter
Check us out on YouTube!Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
Want to hear more from Jeff? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.
