Nu Holdings (NYSE:NU), a Brazilian online lending company, saw more than a 7% decline in its stock intra-day today after reporting its third-quarter results. Despite a strong performance, investor expectations were high, which led to a less enthusiastic market reaction.

Nu Holdings reported a net income of $303 million for the third quarter, surpassing the consensus estimate of $251 million. The company achieved a record high in revenues, amounting to $2.1 billion, which was above the forecasted $2 billion.

Morgan Stanley analysts commented on the quarter’s results, noting that Nubank had a solid performance, beating the sell-side net income consensus by 20%. The company’s top-line growth was robust, driven by an increase in clients, volume growth, and net interest margin (NIM) expansion.

However, the analysts pointed out that while Nubank’s net income exceeded sell-side expectations, the buy-side consensus was closer to the actual reported figure of around $300 million. This alignment with expectations, rather than a significant beat, might limit market excitement. The analysts suggested that any weakness in the stock price could be a buying opportunity, indicating confidence in the company’s performance despite the market’s initial reaction.

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