Why Nu Stock Jumped 10% in October
Shares of Nu Holdings (NYSE: NU) stock gained 10% in October, according to data from S&P Global Market Intelligence. The Brazil-based bank is benefiting from increased investor enthusiasm in the banking sector as interest rates go down.
Nu is not your typical bank, and some investor optimism is also likely to be in anticipation of an excellent third-quarter earnings report. However, Nu stock has started to fall in November, which isn't unusual before earnings. Nu stock had hit an all-time high, and that something leads to a light correction. Third-quarter earnings will be released Nov. 13.
Nu is an all-digital bank serving Brazil, Mexico, and Colombia. Although it's relatively young, it has already become one of the most popular banks in Brazil, with 56% of the adult population as members as of the end of the second quarter. That percentage has climbed every quarter and should be higher in the third quarter.
Source Fool.com
