If you blinked, you might have missed it.

Nu Holdings (NYSE: NU) just set the stock market ablaze with its 16% surge after releasing its latest earnings report.

This Latin American fintech company is making serious money moves, and investors are paying attention.

But let me cut through the hype. Is NU stock a golden ticket or just a sugar rush in the stock market?…

…the numbers will tell

Only a few years ago, Nu Holdings was the scrappy digital bank challenging old-school financial institutions.

Now? Nu Holdings has:

• Rocked $1.03 billion in net income for the year 2023, in a remarkable show of resilience after a $190 million net loss a year prior.
• An earnings growth rate of 91.4%, which is greater than its peers.
• 16% in total shareholder return over the last three years? That is not keeping pace with the market, it is leading it.

Nu Holdings is not only growing but also growing efficiently with a return on equity (ROE) of 25.8%.

Behind the scenes

The wider stock market has been a mixed bag recently. The Dow and S&P 500 stocks saw a bit of life, while the Nasdaq took a hit, especially with large tech names such as Tesla and Nvidia tumbling.

Amid this wildfire, Nu Holdings has outperformed them all. Why?

Well, investors love companies that deliver and NU just did that.

Additionally, more people are moving to digital banks and NU is in a great position to give the people what they want.

Finally, the US banking sector returned 17% last year, and NU’s earning growth was much, much higher.

But, is it all positive with NU? Err, not quite.

Of course, it’s not all smooth sailing. While NU has been earning largely, its overall stock return in the past year lagged behind the broader U.S. market’s 9% gain.

Should investors buy, sell, or hold?

Nu Holdings is showing the world that it could be a top fintech player.

If you believe in the future of digital banking in emerging markets, this may be a solid long-term bet.

However, if you’re nervous about short-term market swings, it might be worth waiting to see if you can get a better entry point.

NU could go on a wild (and lucrative) ride if it keeps up this pace. Hang on to your hat!