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Bullboard - Stock Discussion Forum Nu Holdings Ltd NU

Nu Holdings Ltd is a Brazil-based holding company, which engages in the provision of digital banking services. The Company offers its customers products across the five financial seasons: spending, saving, investing, borrowing, and protecting. Its spending solutions are designed to help customers pay for goods and services in their everyday lives with a customized credit line or instantly... see more

NYSE:NU - Post Discussion

Nu Holdings Ltd > 😟Can Nubank Go Bankrupt?😟
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Post by AnthonyFauci on Jul 06, 2022 7:34am

😟Can Nubank Go Bankrupt?😟

The drop in the share price raises apprehension

Nubank is not in a good moment on the stock exchange. In other words, its shares in B3 have melted by more than 60% since the beginning of 2022. In fact, last Wednesday (29) they ended the day quoted at R $ 3.37. And so, this decline raises a warning to investors about what the company’s fate will be in the coming months. After all, can Nubank go bankrupt? Find out below.

Can Nubank go bankrupt?

Concerns about Nubank’s performance rose further after the Ita BBA report, released last week, recommended that clients stay away from these actions. The report highlights that the growth in the number of the institution’s clients in recent months, 61% between the 1st quarter of 2021, and the 1st quarter of 2022, in Brazil alone, is in contrast to the decline in the real income of Brazilians. .

In addition, most of Nubank’s revenue in the 1st quarter, which was 200% higher than the previous quarter, was due to the increase in the credit portfolios of its customers. All of these factors, according to the Ita BBA, suggest that Nubank’s default could grow significantly.

Furthermore, the collapse in equities is the result of two main factors. On the one hand, it is a reflection of the global movement, which has fallen victim to many companies in the financial sector. Faced with uncertainties and rising interest rates in some countries, investors are looking for safer assets. And so, they ran away from companies like Nubank.

https://newsfounded.com/brazileng/can-nubank-go-bankrupt-the-drop-in-the-share-price-raises-apprehension/

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