Nubank Crashes After Results—Warren Buffett Dumps $416 Million
Nubank, the Brazilian neobank co-founded by David Vélez, is facing one of its most challenging moments in the stock market.
On Friday, the company’s shares plunged over 17% following the release of disappointing financial results for both Q4 2024 and the full year.
This marks the stock’s biggest intraday drop since May 2022.
The company’s performance was impacted by currency depreciation in its home market—its largest of the three countries where it operates. Additionally, Nubank has adopted a more cautious approach in response to higher interest rates in Brazil.
Despite this downturn, Nu Holdings—the official name of the company—had seen its stock rise nearly 29% so far this year. With a market capitalization of $64.1 billion, the São Paulo-based firm has become Latin America’s most valuable publicly traded bank. It has gained traction by offering low-limit credit cards and user-friendly mobile apps to attract customers.
During Thursday’s earnings call, Vélez described 2024 as a “transformational” year for the company and reaffirmed its commitment to expanding “beyond financial services.” This aligns with its October announcement of NuCel, its own mobile phone service.
Buffett’s Exit
Among those offloading shares after the earnings report was legendary investor Warren Buffett, also known as the “Oracle of Omaha.”
Through his firm, Berkshire Hathaway, Buffett sold more than 50% of his stake in Nubank, liquidating 46 million shares worth over $416 million. While this signals a shift in his relationship with Latin America’s leading fintech, analysts suggest it does not necessarily reflect a lack of confidence in the company.
In 2024, Buffett also reduced his holdings in traditional banks like Bank of America, Capital One, and Citigroup, indicating a broader move away from the financial sector amid economic uncertainty and market volatility.
Berkshire Hathaway initially made a bold bet on Nubank in 2021, purchasing 107 million shares. That investment helped fuel the bank’s expansion, and today, Nubank boasts over 114 million users.
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