Nu Holdings shares down 30% from recent highs as market shuns non-AI stocks, despite strong growth and profit gains

Nu Holdings, a Latin American digital banking company, has seen its stock price decline about 30% from recent highs, despite growing "like gangbusters" and achieving a profit inflection. The market is crowding into AI-related stocks while draining liquidity from other sectors.

Nu operates primarily in Brazil (nearly 100 million active customers) and Mexico (15 million customers), with a smaller presence in Colombia. Monthly average revenue per customer reached $16 last quarter, up from $3 at the end of 2020. The company is also pursuing expansion into the U.S. as a fourth market, allocating only a small portion of annual operating budget to the entry.

Net income has grown 4,000% over the past five years, reaching $3.2 billion, with 41% year-over-year growth last quarter compared to 27% gross profit growth. The company currently has a market cap of about $64 billion.