Should You Buy, Sell, or Hold Nu Holdings Now That Its Earnings Are Out?

Nu Holdings (NYSE: NU) has been an impressive long-term success story since its founding in 2013. With nearly 140 million customers across Brazil, Colombia, and Mexico, the online-only bank has consistently achieved double-digit year-over-year revenue growth, sometimes surpassing 100%. However, some analysts question whether Nu's growth days are coming to an end as competitors catch up to its asset-light business model.

Yet, the company's recent quarterly earnings announcement contains key figures that indicate the fintech stock could still be a long-term buy.

Competing banks have been acquiring more customers, but often at the cost of declining credit quality and rising deposit costs. In contrast, Nu has managed to maintain high revenue and customer growth without compromising on borrower quality or net interest margins. Despite the increased competition, Nu's competitive advantages continue to provide it with a durable edge.