Nu Holdings stock price has pulled back in the last two consecutive days as investors started booking profits after the recent surge. It dropped to $15.6, a few points below this month’s high of $16.17. This retreat may continue as investors attempt to fill the fair value gap formed earlier this month.
Nu Holdings stock technicals point to a reversal
The daily chart shows that Nu Holdings stock rebounded after bottoming at $12.12 on September 30 and then started its recovery. This rebound happened as the company walked away from its Monzo acquisition. Media reports suggest that Monzo sought a higher valuation, which Nu found to be too high.
Nu Holdings then continued the bull run after the recent elections in which Flavio Bolsonaro won against Luiz Inácio Lula da Silva, the incumbent. The view is that Bolsonaro will implement business-friendly policies if he wins.
The chart shows that the stock’s rally faced substantial resistance at $16.17. This was an important level because it coincided with the highest point on August 14. It is common for assets to retreat after hitting such an important resistance level.
In this case, retesting that level happened after the stock formed a big fair value gap on October 5. In many cases, assets tend to attempt to fill a major gap. Therefore, there is a likelihood that the stock will retreat as investors target the strong, pivot, reverse level of the Murrey Math Lines tool at $14.6.
Nu Holdings business is doing well
All signs are that Nu Holdings is doing well, with its business firing on all cylinders across all metrics. The most recent results showed that the company had over 139 million customers, much higher than 105 million in the same period last year.
This increase has pushed its revenue much higher. Its revenue jumped to $5.9 billion from $3.8 billion in Q2’25. Its profitability also continued to grow, reaching $1.06 billion, much higher than $637 million last year.
Analysts are highly optimistic that the company’s revenue will continue growing. The average estimate is that its third-quarter revenue rose by 41% in the third quarter to $5.91 billion. For the year, analysts expect the revenue to grow by 44% to $22.83 billion.
Nu Holdings is gaining market share in its core markets. It is now the biggest digital bank in Mexico, a country it entered a few years ago. It is also working on entering the United States, where it will provide several products, including money transfer and lending.
Most analysts expect that Nu Holdings’ stock will continue rising. The average estimate among analysts is that the stock will jump to $18, up by 15% from the current level. JPMorgan has a target of $23, while Rothschild and Needham sees it rising to $19.