With the news that Nu is in talks to acquire Monzo to enter the UK market, I think the company is at a bit of an inflection as I do deeper research.
It has built a highly efficient profitable engine serving Brazil, Mexico, and Colombia, and looks well on its way to generating $5 billion in net income next year through these existing operations, which would put it at 13x forward P/E with very strong track record of double-digit revenue growth.
Now, it has officially launched into the US to capture a nice slice of that market with a focus on latinos and low income customers that are its bread and butter. Launching into the UK could also be helpful as it tries to build a cross-border transfer business and more scale in consumer banking.
On the other hand, it is moving very fast potentially in these two unknown markets and does not have the right to win.
Any thoughts on Nu here as a nice growth story? I could see a world where it is generating $10 billion in earnings in the near future. Anyone have any good writeups on the stock?