Nubank Keeps Growing at Impressive Rate: Has Warren Buffett Struck Gold Again?

investing.com:

Warren Buffett-backed fintech giant, Nubank (NYSE:NU), is gearing up to unveil its second-quarter 2023 earnings. On August 15, the digital bank will reveal its performance between April and June of this year, with expectations set on maintaining the positive momentum from the first quarter.

In May, the Brazilian-based company achieved its highest net profit in history, surpassing $140 million. In the same period of 2022, Nubank reported a loss of around $45 million. This is a significant leap, especially considering the company's financial performance, which had been trailing behind, and its stock since its IPO was not up to the mark.

Nubank's shares had witnessed a 24.2% decline since its December 10, 2021 IPO. However, things have turned around this year, as the stock has rallied 90% YTD. Expectations are that Nubank's revenue for the second quarter could be around $1.76 billion, with earnings per share expected to reach $0.041/share.

In preliminary figures announced in July, Nubank stated it had 80 million customers solely in Brazil, making it the fourth-largest bank in the country by customer count, surpassing the state-owned Banco do Brasil, the country's oldest bank.

As profitability soars, and numbers keep growing, the question that pops into investors' minds is: Was Warren Buffett right all along yet again?

Nubank celebrated its 10th anniversary in May of this year, achieving profit in several quarters within that time frame. This Brazilian fintech burned cash to become a key player in the payment revolution over the last decade in the largest economy of Latin America.

Starting with credit card services, it expanded to offer banking accounts and gradually introduced insurance and investment services to its