Key Takeaways
- Shares of Nu Holdings plunged to a 52-week low of $11.72, reflecting a 26% decline over six months and a 22% drop in 2026.
- First quarter 2026 earnings per share of $0.18 fell short of the anticipated $0.20, representing a 10% miss despite record-setting $5 billion revenue.
- Guilherme Lago is stepping down as CFO after seven years with the company, with former Visa North America CFO Rob Livingston set to assume the role on July 13.
- Bank of America Securities slashed its rating on NU to Underperform while reducing the price target from $16 down to $10.
- Despite the selloff, InvestingPro identifies potential value in the stock, highlighting a PEG ratio of 0.42.
The past week has been particularly challenging for Nu Holdings, and investor sentiment reflects this turbulence.
Shares of NU touched a 52-week bottom at $11.72 on June 2, closing the session marginally higher at $11.85. The fintech company, valued at $63.15 billion, has witnessed a sharp 26% contraction over the last half-year and stands 22% lower year-to-date in 2026. These figures represent a significant correction for the Latin American digital banking leader.
The downturn intensified following confirmation that the company’s financial leadership would undergo a major transition. Guilherme Lago, a seven-year veteran of Nu Holdings who served as chief financial officer for the past five years, is departing the position. He’ll transition to a strategic advisory capacity, maintaining oversight of audit and risk committee functions.
His successor is Rob Livingston, who brings extensive experience from his tenure as Visa’s North America CFO and previous positions at Capital One Financial. Livingston’s appointment becomes official July 13, and significantly, he’ll operate from the United States — a strategic choice with important implications.
The Strategic Importance of US Expansion
Nu Holdings, which operates the Nubank brand throughout Brazil and Latin America, has secured conditional regulatory approval to establish banking operations in the United States. This represents a pivotal moment in the company’s evolution and explains the rationale behind selecting an executive with Livingston’s American market expertise.
CEO David Vélez emphasized that Livingston contributes “a clear view of the US” along with extensive understanding of international financial services institutions. Having built a customer base exceeding 135 million across Latin America, the organization is now positioning itself for expansion into developed markets.
The organizational restructuring includes establishing a separate Brazil-focused CFO position — indicating Livingston won’t manage all regional operations from São Paulo. The fintech currently maintains active presences in Brazil, Mexico, and Colombia, with each representing different maturity levels and growth opportunities.
Quarterly Results Fall Short of Expectations
The leadership announcement coincided with the release of first quarter 2026 financial results, which presented a contradictory narrative.
Nu posted revenue reaching $5 billion — an all-time high representing 41% growth compared to the prior year period. The company generated net income of $871 million. Taken independently, these metrics demonstrate substantial business momentum.
However, earnings per share landed at $0.18, falling short of analyst expectations of $0.20 by 10%. For an equity already experiencing downward pressure, this shortfall proved problematic.
Bank of America Securities responded swiftly. Equity analyst Mario Pierry downgraded the stock from Neutral to Underperform while dramatically cutting the price objective from $16 to $10. His rationale focused on concerns regarding the leadership transition timing, particularly given Nu’s ongoing credit market headwinds in Brazil and aggressive expansion into unproven territories.
The negative analyst action compounded selling pressure during an already difficult trading day.
Contrarian perspectives exist, however. InvestingPro analysis suggests the shares appear undervalued at present levels, citing a PEG ratio of 0.42 — a metric indicating the market may be significantly discounting Nu’s growth prospects compared to industry competitors.
Following the regular trading session, NU declined another 0.6% to $12.91 in after-hours activity.
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