Amazing Growth, WB InsideWith its growth annually, and new product entering new market this is I believe the next big thing.
NU/N trade ideas
$NU - Profit Target HitJust updating an earlier trading idea. The 1st target profit has just been hit.
Trends are powerful. They require a lot of effort to be reversed. The odds are this one will continue.
However, after the breakout and confirmed transition into a confirmed uptrend, this market is now trading against an area where bearish pressure is likely to step in and interrupt the bullish momentum.
Goes without saying that , if you're more into a trend following approach, then there is no exit trigger in this market for you at the moment.
No matter what your style and interpretation is, remember that what's really of the essence is risk management.
Cheers,
Tenacious Tribe - Backtested, Quantified Trading Strategies
Brazilian bank with space potential 🚀
Warren Buffett is famous for his investments, which he makes right at very bottom, and then holds them for many years and stocks bring him > 1000%!
There is a high probability that history will repeat it self with this cryptocurrency bank, in which he invested $ 1 billion a couple of years ago.
In fact, this is the only bet on the cryptocurrency of an elderly investor.
🏦 Nu provides digital banking services.
Every year the revenue of this bank grows by 100-200%!
The company attracts between 4 and 10 million new customers every quarter.
Given population of Latin America, the fintech company boasts significant growth potential in medium term by capturing market share.
But it should be remembered that while the bank is unprofitable, but as soon as the first profit appears, this rocket will not be stopped!
According to technical analysis, the stock found a bottom in region of $3-4 per share.
Now a new growing channel has been formed, which is confirmed by high volumes, so there is every chance that the uptrend will continue.
60% remains to the historical maximum, we will probably see this goal already this year.
💳 Nubank
Ticker: NYSE:NU
🔰 Entry price from: 7.3$
📊 Repurchase price: $5.6, $4.
🎯 Goals: $12, $15, $18
💼 Volume per trade: up to 0.5-3% per portfolio
📈 Potential return: up to 150%
It is better to keep this deal for the medium term.
You should enter the deal gradually, without rushing.
Initially at 0.5-1% of deposit.
If the stock falls, then you can average the position by 1-2%.
If the stock grows, then the entry point was good and you can increase the position by 1-2%.
You can find even more profitable ideas in the profile header 🎩
If you are interested in analysis of any other asset - write in the comments and I will do it.
NU - Breakout Horizontal Trend Channel🔹Horizontal trend channel in the medium long term is broken up.
🔹RSI is above 70 after a good price increase the past weeks..
🔹The RSI curve shows a rising trend, which could be an early signal of the start of a rising trend for the price as well.
🔹Overall assessed as technically positive for the medium long term.
Chart Pattern;
🔹DT - Double Top | BEARISH | 🔴
🔹DB - Double Bottom | BULLISH | 🟢
🔹HNS - Head & Shoulder | BEARISH | 🔴
🔹REC - Rectangle | 🔵
🔹iHNS - inverse head & Shoulder | BULLISH | 🟢
Verify it first and believe later.
WavePoint ❤️
$NU A Fintech JuggernautAfter reaching 80 million customers, the stock of the Brazilian fintech giant Nu Holdings Ltd. (NYSE: NU) climbed as high as 9% over the following days. The Warren Buffet backed company has been showing continuous growth in customers and revenues despite the economic environment it is operating in and it is not showing any signs of slowing down. To reach this success, NU has been capitalizing on the untapped market of unbanked individuals in Brazil and most importantly those without credit cards. With NU set to report its Q1 earnings soon, the stock could be an exceptional long play if it beats its estimates in similar fashion to the previous quarters.
NU Fundamentals
The Brazilian bank’s upcoming earnings are right around the corner with it to report its Q1 earnings on May 15th afterhours, where analysts expect it to report a revenue of $1.3 billion and an EPS of 0.02. Looking back at the history of NU’s earnings, the company has beat its estimates during its last 5 earnings since its IPO. As a result, NU’s stock has always soared following each one of its earnings events, climbing 12% after its last earnings while rising a whooping 26% following its Q2 earnings. As NU witnessed another massive growth in its customer base during Q1, NU could be set to beat its estimates once again after its upcoming earnings which might cause its stock price to increase once again in similar fashion to previous earnings events. But here’s why NU has continuously beat its earnings over the previous quarters and why it could be set to do it again.
Having the backing of one of the biggest American investors Warren Buffett, NU has around 107 million of its shares owned by Berkshire Hathaway – the holding company owned by the Oracle of Omaha.
With NU operating in Brazil, Mexico and Colombia, the company targets a total population of around 392.5 million people. The company has an ever growing customer base with the company recently stating that its customer base has reached 79.1 million in Q1 2023 which is a 33% increase compared to the year prior. Notably, 75.2 million of these clients are in Brazil, however, the company also stated that its customer base in Mexico and Colombia increased by 66% over the same period. This number further increased in April reaching 80 million customers across the three countries. Most importantly, The company’s CEO David Velez stated that this growth would translate into more revenues per customer.
By offering a multitude of different services, NU has a variety of revenue streams per customer including offering free digital bank accounts with no fees apart from a fee of R$6.5 for ATM withdrawals. Opening a free digital bank account could entice customers to explore NU’s other services bringing in more revenue from a single customer such as personal loans with varying interests depending on the customer and a life insurance option starting at a R$9 per month. NU also offers completely free credit cards, where it gains profit by getting a small percentage from the establishment where the customer uses his card to complete a purchase through the mastercard network. All of these services can be found in one convenient place through NU’s smartphone application removing any necessary physical interaction between the customer and the bank.
Introducing a new digital currency called Nucoin, NU could attract more customers further increasing its customer base. Nucoin is a form of cryptocurrency that has no expiration date which is a part of a loyalty program that rewards the customer’s engagement with NU’s platform. Customers can hold their Nucoins to level up and unlock further benefits including coin-back rewards and lottery tickets, or sell them to other customers in exchange for cash. NU describes this loyalty program as revolutionary and expects further development with its general manager Fernando Czapski stating “We expect to see many further developments as Nucoin is out there in the market and blockchain technology expands its reach.”. Nucoin could increase the number of active customers in the future while also bringing in new customers.
One of NU’s biggest feats is the bank’s revenue growth despite operating in an uncertain economic environment. NU went through the largest recession in Brazil during 2015 and 2016 where the country’s GDP decreased by 3.5% in 2015 and another 3.5% in 2016 in addition to the political uncertainty clouding the 3 countries it operates in. Despite these headwinds, NU has survived as its customer base increased from less than 100,000 at the start of 2015 to nearly 1.2 million at the end of 2016 and has been continuously racking up revenues with its revenues growing 171% YoY in 2022.
Moreover, the bank is expected to report its final loss in 2022 according to the 11 American bank analysts, where it’s expected to turn profits of approximately $370 million in 2023. NU already reported its first quarterly profits during its Q3 2022 earnings where it reported a net profit of $7.8 million. As a result, NU bank could be a great long term investment in anticipation of its 2023 annual financial report.
The reason behind NU’s rapid growth is due to its utilization of the unbanked population in Brazil where only 70% of Brazilians had an account at a bank or at any other financial institution in 2017. Additionally, only 27% of Brazilians owned a credit card in 2017 due to the difficulty of obtaining one in the country. To further explain, Brazilians can be denied a credit card if they have a history of debts in the database of Serasa – a 50 year old Brazilian company responsible for a complete database containing information on private individuals and legal entities. They can also be denied a credit card if more than 30% of their income is compromised with the payment of any financing such as loans or installments for example.
To capitalize on this untapped market, NU started offering credit cards to individuals who aren’t able to obtain a credit card due to the previously mentioned reasons resulting in NU having around 32 million credit card active users as of Q3 2022. At the start of this year, NU started offering credit cards to customers between the age of 12 and 17 years old as long as it is requested by their legal guardian which could cause these young individuals to be lifelong customers. However, this could be a risky approach for NU causing it to have a significant amount of unpaid debts by its customers in the future.
NU Financials
In its 2022 annual report, NU reported $29.9 billion in assets including $4.1 billion in cash and equivalents, $8.2 billion in credit card receivables, and $1.6 billion in loans. NU witnessed growth in assets from $19.8 billion including an increase in cash and equivalents from $2.7 billion, an increase in credit card receivables from $4.7 billion and an increase in loans from $1.1 billion. NU liabilities grew YoY from $15.4 billion to $25 billion as its deposits increased from $9.6 billion to $15.8 billion and its borrowings increased from $147.2 million to $585.6 million.
NU revenues grew YoY from $1.6 billion to $4.7 billion and its gross profit increased from $732.9 million to $1.6 billion. However the company’s net loss widened YoY from $165.3 million to $364.6 million.
Technical Analysis
NU stock trend is bullish as it is trading in an upwards channel.
Looking at the indicators, NU stock is currently trading above the 21 MA, the 50 MA, and the 200 MA which is a bullish sign. The RSI is approaching overbought at 60 and the MACD is bearish.
Fundamentally, NU stock’s most recent catalyst was the announcement of the company reaching 80 million customers while one of its upcoming catalysts is its Q1 earnings on May 15th.
NU stock price is expected to increase in light of its upcoming earnings report if it does beat estimates similarly to its past earnings. A possible play would be going long with an entry point would be on testing the 21 MA, taking profits on testing the upper trend line while leaving a tail for if the stock breaks through the channel and tests the $6.44 resistance.
NU Forecast
With NU reaching 80 million customers last month, the company could be set to continue its streak of milestones in the future as it is expected to realize profits soon. NU could increase this number of customers even more having started its new loyalty program by offering its customers the newly formed digital currency Nucoin as a reward for their engagement. Notably, NU has already proved its worth after surviving the 2015/2016 Brazilian recession. In addition to continuing to grow with its revenues constantly increasing over the years despite the everlasting uncertain economic environment where it is operating. To achieve such success, NU capitalized on the untapped market of unbanked Brazilians by offering credit cards to individuals who aren’t able to obtain ones at other banks while also offering credit cards to customers under the age of 18. Based on these reasons and having the backing of Warren Buffett, the NU stock forecast could be promising in 2023 and beyond. Finally, NU stock could be one of the best stocks to buy now in anticipation of its upcoming Q1 earnings.
$NU - Uptrend Commencing+14.73% MoM at the moment of editing. But more important than this percentual gain is what this candle represents.
This market had been ranging between the $3.5 & $5.5 thresholds for the past 12 months after a brutal sell off.
This month, after a shy breakout above the 10 EMA (M), this market is trading close to $6, with that proud green candle breaking above the above mentioned resistance threshold, making new high highs and announcing what could be the start of an uptrend.
Noteworthy is the fact that we are barely in the equator or the month, the time frame used for this analysis ... It goes without saying that we need a closed candle in order to draw firmer conclusions.
No less important, despite the curiosity triggered by this breakout, a careful examination of this market tells us that it has heavy overhead supply and also that the upcoming logical target (zone where the odds of the bears stepping in this market increase),entails that a bullish swing trade would have a poor risk to reward ratio ... if of course we place our stop loss in a logical place as well (below the $5.50 threshold - as previous resistance and new support, always with sufficient buffer).
Having this said, now comes the moment when I alert you for the complexity of the world and the financial markets. No Nobel prize, prime trader, financial institution or whatsoever, knows what's going to happen tomorrow. This is a game of probabilities and risk management. If your trade has 60% odds of succeeding (which are actually very good odds), it still means that you ought to expect 4 losses out of every 10 trades in the long run. 4 out of 10 are still pretty significant numbers. Can you really afford to place a bulky share of your capital at this risk? You need to stay alive to allow the good side of the odds to help you out here. So manage risk at all costs and make it your priority.
Cheers,
Tenacious Tribe - Backtested Trading Strategies & Studies
50% discount on all of our products, in our web, with the following code:
MOX Q3C WXRX
NU Long BreakoutLong Idea.
Over the last year, NYSE:NU has been consolidating between 4 - 5, and has recently reclaimed the 200D. Along the way, a trend of increasing volume with price increases and volume decreases with price decreases implies that dips are getting bought, which seems bullish.
Based on market profiles, poor highs seemed to get cleaned up and revisited, implying that there is interest in going higher.
Buy targets: 4.5 / 4.4 / 4.3
Profit targets: 4.9 / 5.1 / 5.3 / 5.6
Trade is invalidated with price < 4.
$NU is Warren Buffett's Largest Investment by Shares -Here's WhyWhy has Buffett purchased a lot of shares of Nu Holdings, specifically?
For starters, the company has grown its customer base to 70.9 million clients in just over a year since going public. Nu Holdings provides credit cards to people who are not eligible to get one through other banks & tries to minimize risk by reducing the eligible benefits that the customer is initially eligible for. As they pay their bills on time, they unlock more benefits & more credit limits.
Another reason is its management. It's no secret that Buffett likes to invest in companies with good management. As he once said, “When we own portions of outstanding businesses with outstanding management, our favorite holding period is forever.”
Nu Holdings has recently hired David Marcus (former president of PayPal & former Meta Board member) on March 6 to be part of its Board of Directors. It’s expected that David will play a crucial role in Nu’s journey going forward.
The rest of the management team brings a lot of experience to the table as well:
CEO, David Velez, was a partner at Sequoia capital between January 2011 & March 2013. He also worked for Goldman Sachs, Morgan Stanley, and General Atlantic.
CGO, Cristina Junqueira, worked for a Boston Consulting group before founding Nu Holdings in 2013.
CFO, Guilherme Lago, worked in Credit Suisse Group AG & Mckinsey as well.
CPO, Jagpreet Duggal, worked as a director of product management at Facebook.
So you can see Nu’s management team has significant experience in this sector and under their leadership, Nu Holdings grew its revs from $1.7 billion in 2021 to $4.8 billion in 2022 - a 182.3% increase YoY.
Nu Holdings’ Edge - Brazil’s Unbanked Population
Before Nu Holdings started, over 55 million Brazillians were unbanked. This is because it's notoriously difficult for people who are not wealthy to obtain credit cards in Brazil. In general, it's very difficult to get a credit card in Latin America without being one of the wealthy elite.
By offering credit cards to people who would not be able to obtain one any other way, Nu has captured a large, untapped market. This is the main reason Nu is as successful as it is today.
Compared to SOFI, Nu Holdings has a much larger client base, this is of course due to its operations in Brazil, Mexico, & Columbia which in total have a larger population than the US. Thanks in part to these widespread operations, Forbes listed Nu Holdings as one of the world’s best banks in 2022.
Nu Holdings has a larger client base, more revenues, and is growing at a much faster rate than SoFi. The main reason for this is the fact that Nu Holdings doesn’t have as many competitors as SoFi, especially since they focus on an untapped market in Latin America. With SoFi, they have competitors right, left, and center due to established banks and fintech competitors. Nu Holdings became profitable Q3 2022 - only a year after its inception. After making a net profit of $7.8 million in Q3, it went on to make $58 million the next quarter and is on track to report an EPS of $0.02 & $1.393B in revenues in Q1 2023
Whereas, SOFI is still struggling to become profitable and is forecast to make an EPS of $-0.077 & $442.262M in revenue in Q1 2023.
How are Nu Holdings & SoFi similar?
But Nu Holdings & SoFi share one very important thing in common. They both want to be a one stop shop for financial services.
Since SoFi specializes in student loan refinancing, it creates a bond with younger customers who - hopefully - will turn into lifelong customers that use SoFi for all their banking needs. Similarly, Nu Holdings offers credit cards to customers younger than 18 in Brazil - capturing a demographic of young people who will hopefully become lifelong customers.
This means that both companies could continue to grow and expand as their customer base grows older and younger generations adopt their services as well.
Conclusion:
So in conclusion, I think SOFI is in a fairly safe spot as long as the Supreme Court gives a favorable ruling. Since Nu Holdings operates in Latin America it won’t compete with SoFi for market share. Ally & SoFi also have different specializations but Ally is a more established FinTech company which could take customers from SoFi. Still, SOFI’s goal is to become a one stop shop for all financial services and it has diversified its services extensively over the years which could give it an edge in this industry.
Personally, I believe SOFI will be able to grow its customer base better than ALLY because it appeals directly to young adults heading into college. If these customers have a good experience, then SOFI can become their go-to financial service provider for the rest of their life.
On this note, the FinTech industry is on track for major growth especially since Covid-19 acted as a catalyst for the industry - leading to wider adoption at a time when contactless payments were becoming essential.
Besides this, the FinTech industry will likely continue to grow just out of sheer practicality. For one thing, Fintech cuts down servicing costs like maintaining physical branches while still providing a very high value service. As more and more transactions move online, the digital revolution continues to work in the industry’s favor and the widespread adoption of smartphones means that our phones will increasingly act as wallets. So it's not surprising that the use of Fintech companies increased 88% from 2020 to 2021.
Technical Analysis:
Compared to ALLY and SOFI, NU has not dropped as dramatically, which is likely due to its exposure to Latin American markets rather than the US.
The stock is currently trending downwards within the sideways channel. The stock is testing the 200 MA on the daily chart, if it breaks through it I will be going short with the lower trendline as my take profit and the 50 MA as my SL.
$NU head and shoulders for a book.NU is presenting a perfect head and shoulder formation, where the neck was already broke.
Looking for at least the 4.37 level where is the daily MA200.
Let's see.
NU - Mean Reversion MixedNU
Kairi 14
RSI +SMA 14
Drawings on indicators
I checked the intersections on indicators , candlesticks , lines ( trend, SMA )
I always draw my ideas on indicators too
The “Lipstick Index” and beauty stocks to invest in During the last months, inflation has reached sky-rocketing values, leading to a significant increase in the cost of living; contrary to the textbook economic rationale, a possible recession is not making the sale of cosmetics products decline. Rather, in June 2022, lipstick sales went up in the US.
The Lipstick effect, or Lipstick Index, entails a negative correlation between beauty sales and the general economic trend and can be found even during the 1930s Great Depression.
The term was used by Leonard Lauder, the former CEO of Estée Lauder, that stated that the brand’s lipstick sales jumped after the 9/11 terrorist attack and the corresponding American downturn.
Similarly, in 2012, researchers in Texas found out that a downturn in the economy had a positive effect on profits in the beauty industry.
According to NPD Group Inc, in 2011 in the US, skincare, makeup and fragrance sales rose by 11% with respect to the previous years. Sales also rose by 9% in Britain and by 3% in France.
Therefore, people that have less disposable income decide to spend it on non-essential goods anyway. The main theory behind this behaviour is either that women would buy more cosmetic products to feel more attractive, or that in general buying a small luxury will not leave you completely broke.
The Journal of Behavioural and Experimental Economics in 2020 made research on CEX - Consumer Expenditure Survey (which does not distinguish between diverse beauty products) - and it turned out that during the Great Recession, women between 18 and 40 years old would reduce their spending on other categories of consumption to favour spending in cosmetic brands.
Back in June this year, the NPD Group found out that sales of lipstick and other types of makeup grew by 48% in the first quarter over the previous year, and that the biggest share was retailed by prestige brands.
Economists establish that during recessions, consumers spend increasingly either on the traditional inferior good, or the morale booster (non-necessities).
The Lipstick Index could therefore be the indicator of a possible economic recession.
Moreover, after the rebound from the COVID-19 pandemic, the new threat for Europe and the US became inflation. By July inflation had reached 8.6% in the US, and 9.1% in the UK, triggering a drastic effect on various industries.
Beauty purchases seemed on the rise, and brands were forced to up their RRPs to cover higher supply chain costs. For instance, pricing for fragrances at Ulta, Sephora and Nordstrom has increased by 12% since 2020.
According to Yahoo Finance, the cosmetics industry is a fast-growing one and generated over $500 billion in sales in 2020.
According to NPC, during the first half of 2020, the sales of makeup products declined by 24%, whereas the skincare sector was on a rise during the pandemic.
E-commerce sales grew, too, and in the first quarter of 2021, Ulta Beauty reported an increase of 16% in online orders.
The best beauty products to invest in allegedly are :
Natura&Co. Holding S.A. (NTCO) , which in quarter 1 of 2021 had generated 9.5 billion BRL in revenues; at the end of that year, 4 hedge funds were tracked holding positions in the stock.
Inter Parfums Inc (IPAR) , in operation for the past 30 years, with an EPS OF 1.10$ this year, and after licensing the deal with Ferragamo. At the end of the first quarter of 2021, there were 9 hedge funds holding positions in the stock.
Nu Skin Enterprises (NUS) . The popularity of skincare rose during the pandemic, right when people were not able to show off lipsticks and decided to take care of themselves at home. It has a P/E ratio of 17.16, and $2.22 EPS.
E.l.f. Beauty Inc (NYSE:ELF) : it is a recently new multinational makeup and skincare brand. Between 2020 and 2021, the ELF stock gained over 60% and even DA Davidson raised the price target on ELF stock. It currently has a P/E ratio of 81.81 and $0.53 EPS.
Ulta beauty (NASDAQ:ULTA) : it’s got 46 hedge fund holders, with a P/E ratio of 18.51, an EPS of $21.35 and an average volume of 884,553.
Nu Holdings Possible upsideStill learning, looks like the overall trend is up and also volume. Held steady even in the market sell off this could retest the $7.00 area soon. open to suggestions!
NU Bank Incentives In line getting coffee; figures are not exact.
Trend lines are aligned with NuBanks executive management benefits.
Short NULockup period expires 6/7/22. Shares down 50% since IPO. With neutral sentiment, I think we should expect to see some portion the locked up 289,150,555 shares being dumped. Not looking at huge gap down, average trading volume ~50mil, but I believe with recession scares and $NU not being able to report positive net income on their last couple of quarterly reports, investors will shy towards something more resilient
Good technical setup and long term investment oppurtunityXLF was down 1,3% on Friday, but NU kept its upward momentum from the previous days.
RSI and MACD look bullish.
In addition, the price ran into a weekly and a daily Pivot-point without any rejection.
It is safe to say that the stock tries to reverse.
The next resistance is at USD 5.
$NU #NU Inverse Head and ShouldersIs this the inverse h&s we are waiting for? Follow me for trading ideas!
NuCould be a riskier trade as this has been on a massive down trend. Howverr daily candles setting up 2nd green daily in a row. I’m watching hourly uptrend support around this 7.79 area. I’m hoppin in a small trade postion here. Potential double bottom. Play at your own risk. First resiatnce 8.50
NU Overview 2022-02-15Being a volatile security Nubank seems to get on track to the bullish channel with begins in 28 of January when hits its minimum price in 6.49 as lowest and closing in 6.75.
However, it's needed that the raises it is necessary that the rise in assets be accompanied by an increase in volume. We need to see that behaviour in order to take a bullish position.
It's important to note that Nubank is new security and it'll have an erratic behavipour. Especially if we take in account that the company have an negative net margin, earning per share and ebitda.
NU Update 2022-02-24Nubank NYSE:NU remains in the channel plotted in the analysis of the day 2022-02-15. Despite the fact that in the middle we have the announcement of some purchases by NYSE:BRK.A , the earnings report and the Russian invasion to Ukrania.
We need to wait to see what happens in this new pivot and see the evolution of the volume, especially in the critic's moments: When the price is near the channels lines. Rhere are some uncertainties in this new stage. You can see this in the yellow line.
NU Overview 2022-02-17Today Nubank ( $NU ) broke the channel top line in 10.02. And closed above it in 10.09. It's a good signal because it means that this channel is broken, and we extend the baseline of the triangle, we can establish a target goal of +4.22 U$S. It means a gain of 42% Approx.
However, it's necessary to have a confirmation in the successive days. Besides that, it's essential to notice that in 22-February will come to the Earning review for the company. So, this event will affect in one or another direction the asset.
Today we have, maybe, a good signal: channel broken with a good volume. But, we need confirmation and take into account the caveat of the important event for the company: the earning review.
Therefore, despite the euphoric power of investors and similar to the overview signed in February 15. Its important to remains neutral in the observation of the tendency.
NU Overview 2022-02-18Continuing yesterday's overview about NYSE:NU Today we need to notice two important events.
1. Today we have the most volatile day in its history. Prices have a range of 2.08$ which means near 18% of intraday volatility
2. At the end of the day the security finish below the channel line (9.99). But Still persist the indecision pattern in the rectangle zone.
The short body of the candle means that exist indecision for the market but there is a bullish bias taking into account the two full body bars in the bullish days vs the little one in the short days.
it is still needed a confirmation to be sure about the target to found in: 14.21 said in the overview of: 2022-02-17
