Stock Market Today, Feb. 26: Nu Holdings Drops After Investors React to Earnings

MrDecoder · 2026-02-27T05:17:24+00:00

Nu Holdings saw a significant stock decline of 9.34% to $15.10 after announcing strong Q4 and full-year results. Despite impressive growth metrics, investors reacted to high market expectations. With a market cap of $81B, Nu remains a potential growth stock.

MrDecoder

2026-02-27 05:17:24

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NYSE: NU

Nu Holdings

Today’s Change

(-9.34%) $-1.55

Current Price

$15.10

Key Data Points

Market Cap

$81B

Day’s Range

$15.06 - $15.94

52wk Range

$9.01 - $18.98

Volume

6.6M

Avg Vol

44M

Nu Holdings (NU 9.34%), a digital banking provider in Latin America, closed Thursday at $15.06, down 9.55%. The stock moved lower as investors reacted to Q4 and full-year 2025 results, focusing on cost structure, credit-risk trends, and margin signals while reassessing near-term valuation. Trading volume reached 143.7 million shares, about 216% above its three-month average of 45.5 million shares. Nu Holdings IPO’d in 2021 and has grown 46% since going public.

How the markets moved today

The S&P 500 slipped 0.53% to finish Thursday at 6,909, while the Nasdaq Composite fell 1.18% to close at 22,878. Within digital banking, industry peers SoFi Technologies closed at $19.1 (-0.98%) and Ally Financial ended at $41.93 (+1.06%), showing a mixed reaction across the group.

What this means for investors

Nu reported excellent earnings yesterday afternoon, but saw its stock drop nearly 10% today. After Nu’s stock more than quintupled from its low in 2022 to its high earlier this year, I think the drop is more related to overly lofty market expectations than to anything wrong with its actual earnings.

In Q4, Nu grew revenue, net income, and deposits by 45%, 50%, and 29%. Its active customer count also rose 15% to 131 million users, while its average revenue per active customer jumped 15%. Trading at 17 times forward earnings with an ROE of 28%, Nu remains a reasonably priced growth stock to consider, especially if investors believe it can land a banking charter in the U.S. and succeed with its global expansion plans.

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