Despite its considerable size and interest from Warren Buffett’s Berkshire Hathaway, it was not hard for U.S. investors to overlook the opportunity in NuBank parent Nu Holdings (NU -6.76%).

NuBank is one of the world’s largest digital banks, but as a company that operates only in Brazil, Mexico, and Colombia, it is likely not on the radar of most U.S. investors.

However, the stock has increased significantly since bottoming out in 2022. Considering its massive growth and potential to expand into new markets, it may not be too late to buy anyway.

Investing in Nu Holdings

Nu suffered from an ill-timed initial public offering (IPO). The 2021 bull market was ending in December of that year, and the stock plunged in the first six months of its trading history from an opening price of $9 per share to below $3.50.

Nonetheless, if you were fortunate enough to buy 1,000 shares at $3.50 in the spring of 2022, you would have just over $11,100 in Nu Holdings, a gain of around 217% as of the time of this writing.

Nu faces Brazil-related headwinds. That country has 102 million of the digital bank’s 114 million customers, and Brazil’s high levels of sovereign debt have weighed on stocks with strong ties to that country.

Consequently, despite the 43% revenue growth in 2024 and its nearly $2 billion in net income, which was up 91% year over year, the stock has dropped more than 30% since November. Moreover, its price-to-earning ratio of 27 is now  on the more moderate side for a high-growth stock like Nu Holdings.

However, rapid adoption in Mexico and Colombia is steadily reducing its dependence on Brazil. That increases the likelihood that this fintech has likely just begun to capitalize on its long-term growth potential, making that earnings multiple all the more attractive.