Nu Stock Just Cratered, and It's 36% off Its High. Is This a Buying Opportunity?

NU has fallen 36% from its high after Brazil's election results, even as the company's operating numbers keep climbing. That disconnect is the story for active traders.

The Latin American digital bank now serves 140 million customers. Revenue growth is running between 39% and 56% year over year, profitability is improving, and average revenue per customer is rising. The company is also expanding into the U.S. market, adding a growth leg outside its home region.

Valuation is the hook: NU trades at under 11x forward earnings. Analysts cited by The Motley Fool read the election-driven selloff as a buying opportunity rather than a fundamental break.

Interpretation: the drawdown appears tied to political risk in Brazil rather than to any deterioration in reported metrics. A sub-11x multiple on a business growing revenue at those rates suggests the market is pricing in a sizable country-risk discount. Whether that discount is justified depends on how Brazil's policy direction evolves, which the supplied evidence does not address.