Waiting for Revolut IPO? NU Holdings is cheaper and more profitable

Encripta · 2026-06-04T08:53:33+00:00

=== SUMMARY === - The post compares NU Holdings (NU), a Latin American neobank, to the upcoming Revolut IPO, arguing that NU is cheaper, more profitable, and undervalued relative to Revolut’s hype. - The author holds 2,000 shares at an average cost ~$12.15 and sees a target of $25–$50 within a 2‑3 year holding period, driven by profitable operations and planned U.S. entry in 2027. - Quality assessment: Moderate DD with basic financials and charts, but relies on speculative comparisons to an unlisted peer; more conviction than deep analysis. === SENTIMENT === BULLISH === TRADE IDEAS === NU - LONG | confidence: 0.75 | sentiment: +0.70 Speaker: u/Encripta Thesis: 1. THE FACT: NU is profitable, generates revenue from interest, fees, and services across Brazil, Colombia, and Mexico, and has a conditional U.S. banking license for 2027. 2. THE BRIDGE: If Revolut’s delayed IPO eventually arrives with a high valuation, NU’s cheaper current valuation could re-rate upward as a comparable neobank with proven profitability. 3. THE VERDICT: Long NU as a value play on neobank growth in emerging markets, with upside catalysts from U.S. expansion and sector peer re‑rating. 4. RISKS: Heavy dependence on Brazil’s economic/political stability; U.S. entry may face regulatory or competitive headwinds; valuation gap to Revolut may not close. Timeframe: long-term Key Points: - Profitable neobank in high‑growth LATAM markets - Undervalued vs. Revolut’s implied valuation - U.S. entry expected in 2027 as catalyst - Brazil political risk is the main headwind - Author holds 2,000 shares at ~$12 avg === COMMENTS SUMMARY === The top comment (+17) from u/Plastic-Strain3186 highlights the geographic concentration risk — Brazil’s volatility could tank the entire position. No other major counter-arguments or data points were provided. The community largely acknowledges the DD as solid but cautious on single‑country exposure.

AI Summary

Summary

The post compares NU Holdings (NU), a Latin American neobank, to the upcoming Revolut IPO, arguing that NU is cheaper, more profitable, and undervalued relative to Revolut’s hype.
The author holds 2,000 shares at an average cost ~$12.15 and sees a target of $25–$50 within a 2‑3 year holding period, driven by profitable operations and planned U.S. entry in 2027.
Quality assessment: Moderate DD with basic financials and charts, but relies on speculative comparisons to an unlisted peer; more conviction than deep analysis.

Score 20

Comments 35

Upvote % 92%

▶ Full Post Text

I know, this year the IPO around the corner is SpaceX and lots of companies have benefit from the hype around, what will happen after? Don't know, don't care.

Now, to the point. While I am a Europoor who uses Revolut mostly for vacation cause unlike USA Citizens we can easily travel to multiple countries near by that uses a different currency, I am really looking forward for Revolut IPO.

Unfortunately, the IPO has been delayed, as CEO wants the company to be fully released globally before going public, this I guess is a good long term move and it will bring additional investors and the company will be more known.

And so, it kept me thinking... what kind of Neobank can I invest on that is relatively cheap compared to others, in good health and with a 2-3 years hold vision?

So I did a little research, mostly using Gpt and Grok cause, why not, Is free and is there.

I came across a company called NU Holdings which essentially is a Revolut, except it operates in LATAM. Specially Brasil, Colombia and recently added Mexico. The company aims to enter USA market soon.

Looking at their numbers, NU Holdings is a winner. The Revolut valuation is of course theoretically but we all know the hype around these things.

https://preview.redd.it/aptpd9f1985h1.png?width=721&amp;format=png&amp;auto=webp&amp;s=289e9eaef5d8356abeec72319a2b3bd370277af7

Now, there are some risks as well. Most of Nu Holdings profit comes from Brasil, and investors punish companies that operates in certain regions or countries due to market uncertanty and other political events. Mexico still needs to grow and the USA expansion will be key to gain popularity and growth this is why they already obtained a conditional approval early this year and are expecting to enter the market in 2027. Not that far away.

Here is how NU Holdings make money, I add this chart just because it looks so cool.

https://preview.redd.it/6vo5w4bia85h1.png?width=1691&amp;format=png&amp;auto=webp&amp;s=e943c8d0040931a042b51d8dbcb794676966d5aa

If comparing to Revolut current valuation, NU is heavily undervalued, this company should be trading at least at 25$. and if we go bull case with Revolut IPO going bananas it could reach 50$, I am not saying this shit is going to make you a gazilion of money, just that current price is very undervalued for a company that in essence, does better than others in same sector and are valued at higher price.

https://preview.redd.it/csv19lzbb85h1.png?width=791&amp;format=png&amp;auto=webp&amp;s=315b066bd96c6a8a92e1ffad5c5a7ff3417e612f

And last, this is not financial adivice, I wrote it by hand all by myself so excuse my english as I am not native speaker.

Positions: 1500 shares at 11.86$ and 500 shares at 13$

https://preview.redd.it/11jhxd3mb85h1.png?width=545&amp;format=png&amp;auto=webp&amp;s=62525c6f00a9f0f7e8e5932ac874727e32ea54b0

https://preview.redd.it/x9acxx5qb85h1.png?width=531&amp;format=png&amp;auto=webp&amp;s=11b8c694423b04c1a286271eba58ae76090d3ad8

Summary

▶ Full Post Text

Ideas

More from Reddit — r/wallstreetbets