Nubank Stock A Bargain After An 18% Sell-Off

Nubank ($NU), the favorite growth stock of legendary investor Warren Buffett, suffered a sharp selloff on Friday after its earnings disappointed investors. While $NU opened for trading down less than 10%, the decline accelerated due to the overall market plunge, as the Nasdaq also fell 2.20%.

Last Friday was a tough day in general for Wall Street, but NU fell more than other high-growth names due to slightly weaker-than-expected earnings. This sharp decline was primarily due to unfavorable FX movements. Given that Nu reports its financial results in USD, the weakened foreign currencies made the company’s financial growth appear less robust when translated into dollars. However, when viewed in local currency terms, Nu continued to deliver impressively high growth rates, suggesting that the underlying fundamentals of the business remain strong. Let’s take a deeper dive.

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