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Nu Holdings Is Expensive, but Here's Why I Can Live With Its Rich Valuation

TheMotleyFool

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Nu Holdings Is Expensive, but Here's Why I Can Live With Its Rich Valuation: https://g.foolcdn.com/editorial/images/733023/person-stocks-8.jpg

The Brazilian digital bank Nu Holdings (NYSE: NU) has been rolling, and its stock is now up more than 83% this year. The company had another strong quarter recently, generating record revenue of more than $1.6 billion and turning in its third consecutive quarter of profitability, with net income jumping to almost $142 million for the quarter.

After this big rally, there's no beating around the bush: The fintech stock is expensive, trading at more than 42 times forward earnings, with nearly a $31 billion market cap. The valuation is undeniably high, but here's why I can live with it.

Image source: Getty Images.

Source Fool.com

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