Shares of Nu Holdings Ltd. (NU) tumbled 5.02% in pre-market trading on Wednesday, as investors reacted to the company's disappointing first-quarter results. The Brazilian fintech giant's adjusted profit fell short of analysts' expectations, triggering a sell-off in the stock.
Nu Holdings, which has been expanding rapidly in Latin America's financial services sector, saw its U.S.-listed shares initially drop 2.6% following the earnings release. However, the negative sentiment intensified as the pre-market session progressed, pushing the stock down further to a 5.02% decline.
Despite the earnings setback, it wasn't all bad news for Nu Holdings. Susquehanna, a prominent financial services firm, raised its target price for the company from $14 to $15. This upgrade suggests that some analysts maintain a positive long-term outlook on Nu Holdings, even as the market reacts negatively to the short-term earnings miss. Investors will be closely watching how Nu Holdings addresses the challenges that led to the earnings shortfall and whether it can regain momentum in the coming quarters.
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