Nu Holdings Ltd. (NU) shares plunged 5.53% in post-market trading on Wednesday, reversing earlier gains following the company's fourth-quarter earnings release.

The sharp decline appears to be driven by investor concerns raised during the company's earnings conference call. According to the CFO, Nu Holdings typically sees an uptick in delinquency rates in the first quarter, raising worries about future credit quality. Additionally, the CFO indicated that pressure on the efficiency ratio from strategic investments would last for about four to six quarters, suggesting potential headwinds to near-term profitability.

These cautionary comments from company executives overshadowed otherwise positive quarterly financial metrics, including a 33% return on equity and $894.8 million in net income for the fourth quarter, leading to the significant post-market sell-off.