Why Nu Stock Plunged 20% in the First Half of the Year

Nu Holdings stock dropped 20% in the first half of 2026 due to increasing competition, economic concerns, and valuation worries, despite the company's strong fundamentals. The digital bank continues to demonstrate robust growth across Brazil, Mexico, and Colombia, adding 4 million customers in Q1 2026 to reach 135 million total. With expanding market opportunities including new bank charters and U.S. expansion plans, the stock now trades at a more attractive valuation of 22x trailing earnings, presenting a potential buying opportunity for long-term investors.