New Brazil Fiscal Package Weighs In on Nu Holdings (NU)

We recently published a list of Investors Are Dumping These 10 Stocks. Nu Holdings Ltd. (NYSE:NU) is one of the worst-performing stocks on Thursday.

Nu Holdings declined by 5.4 percent at intraday trading on Thursday at $12.07 apiece as investor sentiment was dampened by uncertainties in Brazil’s new fiscal package.

The plan, which includes slapping higher taxes on financial firms, heavily weighed on investor sentiment, including Nu Holdings Ltd. (NYSE:NU).

While the bill remains under scrutiny by the Congress, the measure would require the financial sector to pay higher duties on their net profits if it passes into law.

According to the Brazilian government, the overall measure is expected to generate R$40 billion annually.

In the first quarter of the year, Nu Holdings Ltd. (NYSE:NU) grew its net income by 74 percent to $557.2 million from the $378.8 million in the same period last year. Revenues rose by 40 percent to $3.2 billion driven by a 62 percent expansion in the interest-earning portfolio.

“In Brazil, nearly 30 percent of adults consider Nu their primary bank, confirming significant market share gains and value delivery. With disciplined boldness, we’re capitalizing on vast growth opportunities by responsibly expanding, strategically reinvesting, and scaling our proven flywheel model,” said Nubank CEO David Velez.

“We are confident that by continuously enhancing our offerings and market position, Nubank will capitalize on the long runway of growth ahead of us and deliver enduring value to both customers and shareholders,” he added.

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Disclosure: None.