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PayPal Holdings Inc. (PYPL)
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Lightspeed Commerce Inc. Subordinate Voting Shares (LSPD)
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Nuvei Corporation Subordinate Voting Shares (NVEI)
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Nu Holdings Ltd. Class A (NU)
Any idea why Nu Bank holdings is surging as compared to NVEI, LSPD, PYPL etc. Is it because Warren Buffet owns shares in the company? Is it worth starting a position?
It is certainly helpful to have Warren Buffet as a large shareholder. NU targets Latin America, which is growing fast as a fintech/banking region. Most people there do not have proper access to many financial products. NU also takes in deposits and has a loan book, which most fintech companies here do not get involved with. Most North American fintech companies have experienced a significant slowdown in growth compared to the COVID years, in addition to multiple contraction from higher rates, which explains somewhat the peer underperformance.
NU has been growing at an impressive pace of almost 100% annually in the last few years. A recent beat on both the top and bottom line also helped improve the share price momentum. NU is trading at 27x Forward P/E, which is not too expensive for such a fast grower. We don't follow international companies closely, but it has some attractive features, certainly.