Nubank Shares Plunge 20% After Brazil’s Lula Wins Surprise Election Victory

Nu Holdings ($NU), the parent company of Brazilian digital bank Nubank, plunged roughly 20% after President Luiz Inácio Lula da Silva secured a surprise fourth term in Brazil’s presidential election.
Lula defeated right-wing Senator Flávio Bolsonaro with 51.8% of the vote, triggering a broad selloff across Brazilian equities that dragged down state-controlled Petrobras ($PBR) by 17% and the iShares MSCI Brazil ETF ($EWZ) by 21%. The election outcome has heightened investor concerns over persistent fiscal deficits, rising public debt, potential tax hikes, and increased government intervention in the economy.
Legendary investor Warren Buffett’s Berkshire Hathaway previously invested in Nubank beginning in 2021 but fully exited its position in the first quarter of 2025. Despite the sharp market selloff, some Wall Street analysts remain constructive on the digital bank, with Monness Crespi recently initiating coverage with a Buy rating and a $20 price target.