Nu Holdings Ltd. (NYSE:NU) shares are trading lower Friday after the company reported mixed first-quarter financial results.
- Nu stock is showing downward bias. What should traders watch with NU?
Q1 Highlights
Nu reported earnings per share of 18 cents, missing the consensus estimate of 19 cents. In addition, it posted revenue of $4.96 billion, beating the consensus estimate of $4.48 billion.
The company added approximately 4 million customers in the first quarter, bringing its total customer base to more than 135 million globally as of March 2026. In Brazil, Nu surpassed 115 million customers and said it solidified its position as the largest private financial institution in the country. In Mexico, the company exceeded 15 million customers and became the third-largest financial institution in the market. Colombia approached 5 million customers following another quarter of net additions.
Nu said Monthly Average Revenue per Active Customer reached approximately $16 in the quarter, growing sequentially once again. The company's monthly activity rate held at 83% despite first-quarter seasonality and expanded sequentially in Brazil, where Nu is nearing 100 million active customers.
Total deposits increased 22% year-over-year to $42.4 billion. The company's total credit portfolio expanded 40% year-over-year and 7% quarter-over-quarter to $37.2 billion. Nu said its loan-to-deposit ratio reached 58.3% in the first quarter, up from 49.1% in the prior quarter.
"Our AI transformation is a core priority of Nu. We are not adding AI to banking, we are rebuilding banking around AI," said David Vélez, founder and CEO of Nu.
Vélez said the company's NuFormer foundation models are currently in production for credit cards in Brazil and Mexico and for unsecured lending in Brazil. He also said Nu's AI Private Banker functionalities already serve more than 15 million monthly active users.
The CEO noted that Mexico reached break-even during the quarter and became the third-largest financial institution in the market with 15 million customers.
Bearish Trend Remains Intact
Nu is currently positioned below all key moving averages, indicating a bearish trend. The 20-day SMA is 13.1% below the price, while the 50-day SMA is 13.8% below, suggesting that traders should be cautious as momentum is not favoring upward movement.
The RSI is currently at 27.93, signaling that Nu Holdings Ltd. Class A Ordinary Shares is in oversold territory. This level often indicates a potential for a price rebound, but traders should be wary as it can also reflect sustained weakness.
MACD is below its signal line, indicating bearish pressure on Nu Holdings Ltd. Class A Ordinary Shares. This suggests that the downward momentum could continue until a bullish crossover occurs.
Traders should watch the resistance level at 14.00 and consider it a critical point; if breached, it could signal a potential trend reversal. Conversely, without a clear support level established, the stock may continue to face downward pressure.
The death cross occurred in April when the 50-day SMA crossed below the 200-day SMA, reinforcing the bearish outlook for Nu. This crossover typically indicates a longer-term downtrend, which traders should take into account.
Looking at the 12-month performance, Nu Holdings Ltd. Class A Ordinary Shares has seen a slight decline of 0.15%. This lack of upward momentum over the past year highlights ongoing challenges and suggests that traders should remain cautious in their approach.
Nu Shares Edge Lower
NU Price Action: At the time of publication, Nu shares are trading 6.11% lower at $12.14, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
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