What Happened?
Shares of online money transfer platform Remitly (NASDAQ: RELY) jumped 4.1% in the morning session after the company unveiled a positive medium-term outlook and set financial targets for 2026 and 2028 during its Investor Day event. During the event, Remitly shared its vision for building a global financial services company. Management provided financial targets for 2028, with revenue expected to be in a range of $2.6 billion to $3.0 billion and Adjusted EBITDA projected between $575 million and $600 million. The company also stated it would balance revenue growth and profitability to achieve a "Rule of 40" framework by 2028, meaning the sum of its revenue growth rate and profit margin would aim to be at least 40%. To reach these goals, Remitly planned to introduce new value-added financial services and enter high-growth areas to deepen engagement with customers. The company's CFO noted that its financial model was built on a foundation of durable growth.
After the initial pop the shares cooled down to $14.04, up 3.9% from previous close.
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What Is The Market Telling Us
Remitly’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 2.6% on the news that investors appeared to be buying the dip in a technical rebound following a significant drop in the previous month. The stock had previously fallen 16% after an earnings report was overshadowed by the company's forecast for slowing growth. Concerns about rising credit risk, partly due to a weakening U.S. economy, also weighed on the shares. Despite the recent pullback, which sent the stock to a 52-week low, Wall Street analysts maintained a consensus "Buy" rating on the digital remittance specialist.
Remitly is down 37.3% since the beginning of the year, and at $14.04 per share, it is trading 48.3% below its 52-week high of $27.14 from February 2025. Investors who bought $1,000 worth of Remitly’s shares at the IPO in September 2021 would now be looking at an investment worth $289.78.
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