Why Nu Holdings Gained 14% in January
Shares of Brazilian fintech company Nu Holdings (NYSE: NU) gained 14% in January, according to data provided by S&P Global Market Intelligence. The month did not feature any significant news about Nu, but investors' reviving confidence in the economy and the market broadly lifted many stocks. Nu has been posting robust growth, and investors are optimistic about its future.
Nu is based in Brazil, and it offers digital banking services in that nation, Mexico, and Colombia. It already has 39% of the adult population in Brazil as members, and its total customer count increased by 46% year over year in the third quarter to more than 70 million. In all three of its current markets, its business has a long runway for growth.
The company has been posting tremendous growth by an array of metrics. Revenue increased by 171% year over year to $1.3 billion in the third quarter, with monthly average revenue per active customer (ARPAC) rising 61% to $7.90. Nu's growth strategy revolves around increasing customer engagement with its various financial products, and its ARPAC reflects how that's going, which is why investors should keep an eye on it from quarter to quarter.
Source Fool.com
