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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why Remitly (RELY) Stock Is Falling Today

RELY Cover Image

What Happened?

Shares of online money transfer platform Remitly (NASDAQ: RELY) fell 4.7% in the morning session after JMP Securities lowered its price target on the company to $23 from $32, citing several near-term headwinds. 

The firm pointed to three key concerns weighing on the stock. These include management's comments suggesting third-quarter guidance is accurate without room for a positive surprise, and that analysts' 2026 revenue forecasts may be too optimistic. JMP also highlighted unanswered questions about Remitly's new lending products, particularly around their profitability, funding, and credit risk. A third factor was the potential impact of immigration enforcement news on the business. Despite the significant price target reduction of over 28%, JMP Securities maintained its "Market Outperform" rating, describing Remitly as "one of the strongest secular growth vehicles in FinTech.".

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Remitly? Access our full analysis report here, it’s free.

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 1.3% on the news that Wolfe Research upgraded the stock's rating to Outperform from Peerperform. 

The research firm set a price target of $25.00 for the digital payments company. The upgrade is based on Remitly's strong financial health, highlighted by a 35% year-over-year revenue growth and a solid liquidity position. Wolfe Research believes the company is well-positioned to benefit from long-term trends in digital money transfers and financial services. This positioning is expected to enable Remitly to continue capturing market share from more traditional, retail-focused providers in the sector.

Remitly is down 23.7% since the beginning of the year, and at $17.10 per share, it is trading 37% 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 $352.94.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

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