Time to Buy the Dip on Nu Stock?

The market has a wild ride so far in 2025, while S & P 500 Briefly entered Corrective area: Before bypassing last week. For new investors, it can be a terrible time. But experienced investors know that not only this is for the course, there is a silver lining. You can find excellent resources at excellent prices.

Now keeps (NYSE: now) In the past year, the market has been less than 1%, and S & P 500 has increased by 10%. However it begins to jump back. Now is the time to buy.

Nu provides digital banking and financial services in Brazil, Mexico and Colombia. It carved characters, opening a region with significant entrance to bank customers, and members consist of ease of use NU. It provides a strong quarterly increase in the regions where it operates is still a few digital financial access, giving it a healthy runway.

In the fourth quarter of 2024, revenues increased by 50% per year, and net income increased from $ 360.9 million to $ 552.6 million. The cost of serving was $ 0.80 per customer for more than a quarter, which decreased from $ 0.90 last year.

NU was originally created to meet the needs of the mass population, which failed to enter the highly regulated and expensive banking system of Brazil, but it catches everyone who is looking for a better bank experience. Although it already has 58% of Brazilian adult population, as customers add 1 million new members, 61% of the monthly assets use NU as their main bank account. NU is now the third largest bank in Brazil, in terms of members, but there is much more growth in Brazil. For example, UV customers, its rich consumer service increased by 132% per year, but the number is still small 688,000.

Nu’s is just a modest presence in Mexico and Colombia, where it started with Brazil and it has no full actions yet. It rolled a high-level savings account in these two markets that attract new members and growth there faster than in Brazil. It ended in 2024 in Mexico with 10 million customers, an increase in 91% or 12% of the population of adults. Down the line, there are many related countries that can access that do not have optimal Fintech solutions.

Is now Warren Buffet stockAlthough it does not fit the mold of the classic buffet as it is a young growth fund. He loves bank shares, but there is another thing about NU that Buffett has repeatedly mentioned that it is a great big business. High income (ROE). The low-level NU model gives high profits, and NU’s roe was 28% in 2024, placing it in the best degree of world’s financial institutions.