Warren Buffett completely sold his stake in Nu Holdings (NU) in the first quarter of 2025, netting his conglomerate Berkshire Hathaway (BRK.B) about $250 million in profit.
The recent sale was highlighted in Berkshire’s latest 13F filing, coinciding with the IMF’s decision to lower its growth forecast for Latin America to 2% for 2025. This adjustment is due to decreased activity in Mexico and escalating trade tensions, factors that could potentially put pressure on banks in the region.
However, Nu Holdings just reported a huge 47% jump in net income for Q1, reaching $557 million, and its stock has climbed 19% so far in 2025, outperforming the broader market.
Buffett’s exit wasn’t about Nu’s performance. He also sold all of Berkshire’s Citigroup (C) stock and cut other bank holdings, which suggests he’s just getting more cautious about the financial sector overall. Investors now face a big question: Should they follow Buffett’s lead, or does Nu Holdings still have more room to grow? Let’s find out.
Nu Holdings by the Numbers
Nu Holdings (NU) is a digital banking giant serving over 118 million customers across Brazil, Mexico, and Colombia, with a market capitalization of $61.5 billion. NU shares are up 19% in the year to date.
Nu is valued with a forward price-earnings ratio of 24.3x, a price-to-sales ratio of 5.48x, and a price-book ratio of 7.33x, reflecting a premium for its rapid growth.
On May 13, 2025, Nu Holdings released its first-quarter results, highlighting the company’s relentless growth and operational strength. Earnings per share for the quarter were nearly $0.12, up from $0.08 in the prior-year period. Revenues jumped 40% to a record $3.2 billion.
Net income soared to $557.2 million, up 74% from the previous year. Customer momentum remains a standout, with 4.3 million new users added in the quarter, driving a 19% year-over-year increase.
Deposits climbed 48% to $31.6 billion, while the loan-to-deposit ratio remains conservative at 44%, offering flexibility for further lending growth. Receivables across credit card and loan portfolios expanded 40% year-over-year to $24.1 billion, and the interest-earning portfolio leapt 62% to $13.8 billion.
What’s Driving Nu’s Growth Story
Nu Holdings’ growth story is being fueled by strategic moves that go far beyond the headlines of Buffett’s exit. The most significant recent catalyst: Nu Mexico, Nubank’s subsidiary, secured regulatory approval to transform into a full-fledged bank, becoming the first Popular Financial Society (SOFIPO) in Mexico to achieve this milestone. This is a major step, as it enables Nu to expand its product suite.
The company’s digital-first approach has allowed it to reach 98% of the country’s municipalities, including rural areas, and cement its position as a leading force in Mexico’s financial sector. Once Nu Mexico completes its regulatory audit, it will be able to fully launch its expanded banking services, further accelerating growth in a promising market.
Analyst Insights on Nu’s Future
Wall Street is still positive about Nu Holdings, even with all the talk about Warren Buffett selling his shares. Analysts are watching the company closely and expect earnings per share to be $0.12 for this quarter and $0.54 for the whole year, up from $0.45 last year. That’s a solid 20% increase, which helps explain why most analysts are still recommending the stock.
Out of 13 analysts surveyed, the consensus is a “Moderate Buy,” and the average price target is $15.28. This means analysts see about a 25% gain from the current price.
Conclusion
Buffett may be out, but Nu Holdings is still making waves with its strong growth and ambitious expansion. While some forecasts see downside risk, most analysts remain cautiously optimistic, with price targets suggesting modest upside from here. Given the company’s digital-first strategy and impressive customer growth, shares are more likely to trend sideways or slightly higher in the near term, unless macro headwinds intensify. Should you sell just because Buffett did? Not necessarily. Let’s see how Nu’s story unfolds.
