Nu Holdings Spikes 12% as Brazil Election Upset Drives Rally in Brazilian Assets; Robinhood Edges Higher, SoFi Stays Put
The rally was concentrated in Brazil-exposed financial names as Nu said nearly 118 million of its 139 million customers are in Brazil.
- Nu Holdings surged 13% after Flavio Bolsonaro upset Lula in Brazil's first round, a pivotal result for its 118 million Brazilian customers.
- Investors concentrated buying on Brazil-exposed names, pushing Nu Holdings up 12% to $15.09, while Robinhood Markets and SoFi Technologies remained nearly unchanged.
- Nu Holdings reported Q2 revenue of $5.51 billion, up 55.8% year over year, though it faces a 42.5% Brazilian tax rate that pressures margins.
- Asset quality remains a concern, with Stage 3 loan exposures at 8.3%; Holdings CEO David Vélez stated, "Our base assumption is that the future will be worse than the past."
- A runoff election later this month leaves the rally vulnerable, as an 8.3% Stage 3 loan rate and 42.5% Brazilian tax rate compound political uncertainty for Brazil-exposed assets.
21 Articles
21 Articles
BRAZIL MARKETS SURGE AS FLAVIO BOLSONARO TAKES FIRST-ROUND LEAD OVER LULA
Brazilian markets rallied and the real surged against the dollar after right-wing Senator Flávio Bolsonaro finished ahead of President Luiz Inácio Lula da Silva in the first round of Brazil's presidential election, setting up a runoff on October twenty-fifth. The two candidates will face each other again in three weeks.
Brazilian assets skyrocketed this Monday and the real rose 3% at the opening in São Paulo.Investors count a change of government in Brazil.
Nu Holdings Spikes 12% as Brazil Election Upset Drives Rally in Brazilian Assets; Robinhood Edges Higher, SoFi Stays Put
A first-round upset in Brazil’s presidential election is lifting a Latin American digital bank far more than its U.S. fintech counterparts. Nu Holdings (NYSE:NU) stock is up 12% to $15.09 in early trading, rising alongside a broad rally in U.S.-listed Brazilian shares. Meanwhile, Robinhood Markets (NASDAQ:HOOD) stock is up 0.9%, a modest gain next to […]
Nu Stock Jumps 10% as Flávio Bolsonaro Leads Lula in First Round
Nu Holdings (NYSE: NU) shares jumped 11% to $14.90 in premarket trading Monday as Brazilian assets rallied after Flávio Bolsonaro finished the first round of Brazil’s presidential election 1.87 percentage points ahead of President Luiz Inácio Lula da Silva, reversing Datafolha’s final valid-vote point estimates that had Lula three points in front. NU Is Moving With a Much Bigger Brazil Rally NU’s move is not happening in isolation.Visit Website
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