Nu Holdings shares fell 16.95% on Monday, in line with other Brazilian equities, as investors reacted to Sunday's presidential runoff rather than to company news. Leftist incumbent Luiz Inácio Lula da Silva won and will govern for another four years, and investors worry he will continue direct intervention in strategic enterprises amid a struggling economy and a depreciating Brazilian real. The author says the main risks for Nu are Brazilian consumer strength, borrowers, interest rates and economic development rather than direct intervention, and that Monday's sell-off looks like an unsustainable panic reaction. He argues Nu has grown large enough to weather a slump.
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