Why Nu Stock Plunged 20% in the First Half of the Year

Nu Holdings (NU) shed 20% in the first half of 2026, dragging the stock down to a trailing P/E of 22x despite underlying business momentum that added 4 million customers in Q1 alone. The digital bank now serves 135 million customers across Brazil, Mexico, and Colombia.

The selloff stemmed from a triple headwind: intensifying competition in Latin American fintech, broader economic uncertainty, and valuation compression after the stock's previous run. The company's fundamentals remained solid through the decline, with customer acquisition continuing at pace and geographic expansion intact.

The new valuation multiple marks a significant retreat from earlier levels, bringing NU's earnings multiple closer to traditional banking peers despite its digital-first model and faster growth trajectory. The bank is pursuing new charters in existing markets and planning U.S. expansion, though timing on the latter remains unspecified.