Key Highlights
- Nu Holdings reached its lowest trading level in 52 weeks at $11.72, declining 26% in the past half-year and 22% since January.
- First quarter 2026 earnings showed $0.18 per share, falling short of analyst expectations of $0.20 by 10%, despite achieving record revenue of $5 billion.
- Former Visa North America CFO Rob Livingston will assume the chief financial officer position from Guilherme Lago on July 13.
- Bank of America Securities reduced its rating on NU to Underperform and lowered the price target to $10 from $16.
- According to InvestingPro analysis, the stock appears undervalued with a PEG ratio of 0.42.
Nu Holdings experienced a turbulent week that left visible marks on its share performance.
Shares of NU touched a 52-week bottom at $11.72 on June 2, hovering near $11.85 during the trading session. The digital bank’s stock has shed 26% over the last six months and registered a 22% decline year-to-date in 2026. This represents significant pressure for an enterprise valued at $63.15 billion.
The downturn intensified following the announcement of an executive transition at the top financial position. Guilherme Lago, a seven-year veteran of Nu who served as CFO for five years, will be departing the role. He’s transitioning to a special advisory position focusing on audit and risk committee oversight.
His successor is Rob Livingston, who previously held the position of Visa’s chief financial officer for its North American operations. Livingston’s background also includes executive positions at Capital One Financial. He officially begins his tenure on July 13 and will operate from a US base — a location choice that carries strategic significance.
The Strategic Importance of US Expansion for Nubank
Nu Holdings, the Brazilian financial technology company operating under the Nubank brand, has secured conditional regulatory approval to establish banking operations in the United States. This milestone explains the strategic decision to recruit an executive with Livingston’s North American expertise.
Chief Executive David Vélez emphasized that Livingston offers “a clear view of the US” along with extensive experience in global financial services. Having built a customer base exceeding 135 million across Latin America, the organization is now positioning itself for expansion beyond its established regional markets.
The organizational restructuring includes establishing a separate CFO position specifically for Brazilian operations — indicating Livingston won’t be managing all aspects from São Paulo. The fintech operates in Brazil, Mexico, and Colombia, with each territory representing different growth phases.
Quarterly Results Fall Short of Expectations
The leadership transition announcement coincided with the release of first quarter 2026 financial results, which presented a mixed picture.
Nu posted revenue reaching $5 billion — an all-time high representing 41% growth compared to the same period last year. Net income totaled $871 million. At first glance, these figures appear robust.
However, earnings per share of $0.18 came in below the consensus estimate of $0.20, representing a 10% shortfall. For shares already facing downward momentum, this miss amplified concerns.
Bank of America Securities responded swiftly. Analyst Mario Pierry lowered his rating on NU from Neutral to Underperform while cutting the price objective to $10 from $16. His concerns focus on the leadership transition timing, particularly given Nu’s current credit market headwinds in Brazil and its expansion into less established territories.
This downgrade intensified selling pressure during an already challenging trading day.
Not all analysts share the pessimistic outlook. InvestingPro’s analysis suggests the shares may be undervalued at present levels, highlighting a PEG ratio of 0.42 — a metric indicating the market might be discounting Nu’s growth trajectory relative to industry comparables.
Following the close of regular trading hours, NU declined another 0.6% to $12.91 in after-hours activity.
