I’m seeing an ROE of 27.88%, which is still strong. Not the best I’ve seen but very good still
Nu’s growth has been very strong, and their brand loyalty in Brazil is strong(as you mentioned). I see no reason that users in other LatAm countries won’t develop the same brand loyalty and love of the product as it’s much more user-friendly and convenient than the competitors.
The interest rates and volatility in the region are real concerns, although I believe the brand quality will endure the rough seasons.
I actually still think Nu is undervalued relative to its projected growth, but volatility and future growth questions bring uncertainty to my estimates
Great read! I’m a Nubank bull but I feel that understanding the bear case is critical to having a holistic picture of a company. Good on you for being contrarian
Great read. Have some pushback though:
I’m seeing an ROE of 27.88%, which is still strong. Not the best I’ve seen but very good still
Nu’s growth has been very strong, and their brand loyalty in Brazil is strong(as you mentioned). I see no reason that users in other LatAm countries won’t develop the same brand loyalty and love of the product as it’s much more user-friendly and convenient than the competitors.
The interest rates and volatility in the region are real concerns, although I believe the brand quality will endure the rough seasons.
I actually still think Nu is undervalued relative to its projected growth, but volatility and future growth questions bring uncertainty to my estimates
Great read! I’m a Nubank bull but I feel that understanding the bear case is critical to having a holistic picture of a company. Good on you for being contrarian
Here in Colombia nequi is much more used then nu bank