Key Takeaways
- Shares of Nu Holdings touched a 52-week low at $11.72, representing a 26% decline over six months and 22% loss year-to-date.
- First-quarter 2026 earnings per share of $0.18 fell short of the $0.20 analyst consensus by 10%, despite record-breaking revenue of $5 billion.
- Former Visa North America CFO Rob Livingston will assume the CFO position on July 13, replacing longtime executive Guilherme Lago.
- BofA Securities issued an Underperform rating and slashed its price target from $16 down to $10.
- Despite recent weakness, InvestingPro data suggests potential undervaluation with a PEG ratio of 0.42.
Nu Holdings endured a challenging week that left its share price reeling.
Shares of NU bottomed out at $11.72 on June 2, a fresh 52-week low, before settling near $11.85. The digital bank has witnessed a 26% erosion in value over the last half-year and has shed 22% since the start of 2026. For a company valued at $63.15 billion, these losses represent significant market capitalization destruction.
The decline intensified following confirmation of an executive leadership change. Guilherme Lago, a seven-year veteran of the company who spent five years as chief financial officer, is departing the position. He will transition to a special advisory capacity, focusing on audit and risk committee oversight.
Incoming CFO Rob Livingston brings extensive North American experience, having most recently led Visa’s financial operations for the region. His background also includes a tenure at Capital One Financial. Livingston officially begins on July 13 and will operate from the United States — a strategically significant location choice.
The Strategic Importance of Livingston’s US Base
Nu Holdings, which operates the popular Nubank brand throughout Brazil and Latin America, has secured conditional regulatory approval to establish banking operations in the United States. This milestone explains the rationale behind recruiting an executive with Livingston’s American financial services expertise.
CEO David Vélez emphasized that Livingston delivers “a clear view of the US” along with extensive experience navigating global financial institutions. With a customer base exceeding 135 million across Latin America, the fintech is positioning itself for expansion beyond its established territories.
The organizational changes include establishing a separate Brazil-focused CFO position — indicating that Livingston won’t be managing day-to-day Brazilian operations from afar. The company maintains active businesses across Brazil, Mexico, and Colombia, each representing distinct market dynamics and maturity levels.
Quarterly Results Fall Short of Expectations
The CFO announcement coincided with the release of first-quarter 2026 financial results, which delivered a mixed message to investors.
Nu posted $5 billion in revenue — an all-time high representing 41% year-over-year growth. Net income reached $871 million. Superficially, these metrics demonstrate continued business momentum.
However, the critical earnings per share figure of $0.18 underperformed the Wall Street consensus of $0.20 by 10%. For a stock already experiencing downward pressure, this miss compounded investor anxiety.
BofA Securities responded swiftly. Analyst Mario Pierry downgraded the stock from Neutral to Underperform while dramatically reducing the price target from $16 to $10. His rationale focused on the uncertain timing of leadership transition against a backdrop of credit market headwinds in Brazil and aggressive expansion into unproven territories.
This downgrade amplified selling pressure during an already volatile trading session.
Despite the bearish sentiment, not all analysts share this pessimistic outlook. InvestingPro analysis identifies potential value at current price levels, highlighting a PEG ratio of 0.42 — a metric suggesting the market may be significantly discounting Nu’s growth trajectory compared to industry competitors.
In after-hours trading following the regular session, NU shares declined an additional 0.6% to $12.91.
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