NU Stock Pops After Hours: Monzo Deal Scare Meets Company Denial

• The company’s clarification comes on the heels of media reports that Nu was considering buying Monzo for roughly $10.6 billion to $13.3 billion.
• Nu stock fell about 10% on Monday following the report. 
• The company said priorities remain deepening its position in Brazil, scaling Mexico and Colombia, and building its presence in the United States and worldwide through Nu Global.

Nu Holdings (NU) shares jumped after hours on Wednesday after the Nubank parent said it is not pursuing a deal for Britain’s Monzo, reversing a selloff that had followed weekend reports of an £8 billion-to-£10 billion takeover.

Nu said in a filing with the Securities and Exchange Commission that the company "is not pursuing a transaction with Monzo.” It added that it regularly evaluates partnerships, investments and acquisitions, while not addressing whether talks occurred. The company added that its capital-allocation framework is unchanged, and that it remains focused on deepening its position in Brazil, scaling its businesses in Mexico and Colombia, and building its presence in the United States and around the world through Nu Global.

NU stock closed at $12.66, up 2.5% on the regular session, then traded near $13.41 in after-hours dealing, a gain of about 6% from the official close. The rebound comes after Nu fell about 10% on Monday, when the Monzo takeover rumor erased about $6 billion of the company’s market cap.

The Weekend Report On NU

Sky News first said Monzo was in early talks with Nu Holdings. Reports put a potential price at £8 billion to £10 billion, or roughly $10.6 billion to $13.3 billion, likely a mix of cash and Nu stock. Monzo’s last formal mark was £4.5 billion in an October 2024 secondary sale. The U.K. digital bank has about 15 million to 16 million customers; Nu has no material European franchise.

Nu has a market capitalization of about $61 billion as of Wednesday’s close. Paying the top of the reported range would have equaled roughly a fifth of that equity and more than double Monzo’s 2024 valuation.

Further, as of June 30, Nu held $13.55 billion of cash and cash equivalents and $45.3 billion of customer deposits. Cash alone sat near the high end of the rumored Monzo price. A cash-and-stock structure would have spared the deposit base but risked dilution.

How Did NU Retail Traders React?

On Stocktwits, retail sentiment around NU stock rose from bullish to extremely bullish territory over the past 24 hours, while message volume stayed at high levels.

A Stocktwits user said that they were disappointed with the deal clarification.

Another termed the stock undervalued and pegged it at $40.

NU stock has fallen 24% year-to-date. 

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