Latest news with #RemitlyGlobal
Yahoo
6 days ago
- Business
- Yahoo
Prediction: 2 Stocks That Will Be Worth More Than Upstart 5 Years From Now
Key Points Upstart Holdings has made a recovery but is still a small player in the lending space. SoFi's presence as a comprehensive personal finance platform for individuals should help it expand profits in the years to come. Remitly Global is gaining market share in remittances. 10 stocks we like better than SoFi Technologies › It may seem like a long time ago now, but 2021 was the year of Upstart Holdings. The lending platform grew to a market cap of $30 billion and was aiming to disrupt the traditional pricing mechanisms for consumer loans before it crashed over 90% from all-time highs. In recent quarters, the stock has made a recovery and now sits at a market cap around $8 billion as the company makes progress to go from annual losses to profitability. The stock has come back from the dead, but that does not make it a great buy at today's levels. Here are two fintech stocks that will be worth more than Upstart five years from now, and whether they are buys for your portfolio today. SoFi's attractive proposition The first stock with a more promising future than Upstart Holdings is SoFi Technologies (NASDAQ: SOFI), another highflier from 2020. The online bank has made a sharp recovery and is now generating positive earnings. Last quarter, SoFi's total customer base reached 11.75 million, growing at a 51% compound annual rate since 2021. This led to total revenue growth of 44% to $855 million just in the quarter. More and more people in the United States are adopting SoFi's ecosystem of financial services products that include savings accounts, personal loans, credit cards, and investing. The company's goal is to become a one-stop mobile app for anyone's personal finance needs, and it is now separating itself from the competition. With its much larger scale, the fintech is leveraging its large customer base to generate a healthy profit. Net income grew 479% year over year last quarter to just under $100 million. Today, the stock trades at a market cap of $25 billion, which does not look cheap compared to its price-to-earnings ratio (P/E) of 46. However, the company still has plenty of room to expand its leverage as an efficiently run online bank, meaning that this P/E will come down quickly. SoFi should stay much larger than Upstart and will be a strong stock over the next five years. Remitly's market share gains A stock with a smaller market cap than Upstart is Remitly Global (NASDAQ: RELY). It is a remittance services provider with a market cap of $3.3 billion. Shares of Remitly have fallen in 2025 because of two issues. Immigration changes in the U.S. may present a small but temporary headwind for its growth, but this will likely only end up being a blip on the radar. But stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, could present a long-term headwind for the fintech. However, this narrative isn't supported when looking at the numbers and how people actually interact with remittance providers. People earn money in the currency of the country where they are, and that still requires a remittance provider such as Remitly to send money back to their home country even when using a stablecoin. So the company just announced it will be using stablecoin access to fund an account on its platform. Consumers love Remitly for its ease of use and fees that are lower than the competition's. Revenue grew 34% year over year last quarter to $334 million, with net income of $11 million. Strong unit economics and minimal fixed costs mean that the company can ultimately generate high profit margins, giving it plenty of room to grow earnings in the years to come. With a revenue base of $1.356 billion that is growing like a weed, Remitly has a chance to have a market cap much larger than Upstart if it can keep gaining market share in remittances in the years to come. Upstart's tough path Another reason Remitly and SoFi will be larger than Upstart in five years is the fact that Upstart is going to struggle to generate enough profit to warrant its current market capitalization. For the full year 2025, it is projecting just $35 million in total net income, for a forward P/E of well over 100. It relies on revenue generated by fees made on loans originated through its platform and lending technology but has a bloated cost base with high spending on customer support, technology development, and marketing costs. The company has remained a niche player in the lending space, unable to disrupt traditional methods for generating personal loans. For example, SoFi is much larger than Upstart today. Upstart has a rough path ahead, while the future for Remitly Global and SoFi Technologies looks bright. Include the latter two in your portfolio today and exclude the former. Should you buy stock in SoFi Technologies right now? Before you buy stock in SoFi Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SoFi Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,108,033!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Brett Schafer has positions in Remitly Global. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy. Prediction: 2 Stocks That Will Be Worth More Than Upstart 5 Years From Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-08-2025
- Business
- Yahoo
2 No-Brainer Fintech Stocks to Buy With $2,000 Right Now
Key Points American Express is a stalwart of premium credit cards and is increasingly attracting younger customers. Remitly Global's stock has been crushed, but it's still cheap despite concerns about immigration restrictions on its operations. Both stocks are good fintech companies to own for the long haul. These 10 stocks could mint the next wave of millionaires › Sometimes -- well, maybe most of the time -- the best thing an investor can do is keep it simple. Don't complicate your portfolio, don't chase the hottest sector trends, don't trade on margin. Stay consistent, and your wealth will start to compound if you keep focused on the long term. Nine times out of 10, this will beat the so-called advanced strategies purported to work by Wall Street. You don't have to start with large sums, either, to be a successful investor. With just a few thousand dollars, you can start generating compound returns by taking a few minutes to open up a brokerage account and buy stocks. Here are two no-brainer financial technology (fintech) stocks you can buy with just $2,000 right now. The American Express credit card ecosystem Founded in 1850, American Express (NYSE: AXP) is one of the oldest financial services companies. Its business has evolved many times over the years to serve the needs of U.S. travelers around the world. Today, it has an ecosystem of credit cards, travel rewards, and digital financial services catering to wealthier customers as well as businesses. The high fees for its Gold and Platinum cards come with rewards for dining, entertainment, and travel spending. These have led to partnerships with companies such as Hilton and several international carriers as well as Delta Air Lines. An increasing number of its newest cardholders are millennials and Gen Zers, drawn by its premium brand and its travel benefits. Last quarter, it added 3.1 million net new credit cards, with 63% of its consumer additions coming from these two age groups. These cardholders bring with them large lifetime value as they reach their prime spending years. Last quarter, revenue rose 9%, and adjusted earnings per share (EPS) climbed 17% due to operating leverage and steady share buybacks. This year, it expects EPS of $15 to $15.50. With the current share price at about $300, this gives it a forward price-to-earnings ratio (P/E) of less than 20. For a company that has a long growth runway for its credit card business, investors should have no problems buying and holding American Express for many years. Remitly Global's disruptive success Because of recent U.S. policy changes on immigration, the amount of remittances sent back to Mexico has begun to fall and were down 16% in June. This has caused investors to flee from Remitly Global (NASDAQ: RELY), whose shares are down almost 40% from highs set earlier this year. This drop is overplayed and reflects an underestimation of the growth potential for this disruptor specializing in remittance payments. Remitly has gained market share in such payments since being launched in 2011 due to its easy-to-use smartphone app, various payout methods, and lower fees than legacy competitors. In the first quarter, payments volume grew 41% year over year to $16.2 billion, greatly outpacing the industry averages. Growth may slow through the rest of 2025 if the Mexican corridor gets hit, but this is not a killer for the business. It has just an estimated 2% to 3% market share of international money transfers from individuals, a figure that can easily expand in the years to come. Mexico is just one of its corridors, and even if it is affected by new immigration policies temporarily, over the long run remittances have increased between the countries due to inflation and economic growth. Revenue rose 34% year over year in the first quarter and was $1.36 billion during the past 12 months. Assuming growth slows to 20% for the next three years, revenue will hit $2.34 billion. Profit was once elusive for the company, but it is beginning to rapidly increase its earnings power due to its growing scale. Last quarter, income was $11.4 million, with a 16.2% profit margin as measured according to adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Remitly has the potential to see much wider net income margins in the years to come. If profit margins can expand to 20%, annual earnings will grow to $469 million within three years. Today, the stock has a market cap of just $3.4 billion and a forward P/E of 7 based on these earnings estimates. Wall Street is overestimating how much new immigration policies will hurt Remitly's business in the coming years, making the stock dirt cheap for investors willing to hold for the long haul. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $462,306!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,522!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $619,036!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of August 4, 2025 American Express is an advertising partner of Motley Fool Money. Brett Schafer has positions in Remitly Global. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy. 2 No-Brainer Fintech Stocks to Buy With $2,000 Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-08-2025
- Business
- Yahoo
Remitly (RELY) on 5-Day Winning Streak on Q2 Blowout
We recently published . Remitly Global, Inc. (NASDAQ:RELY) is one of the best-performing stocks on Thursday. Remitly extended its winning streak to a fifth consecutive session on Thursday, jumping 15.06 percent to close at $18.95 apiece after posting an impressive income performance in the second quarter of the year. In its earnings statement, Remitly Global, Inc. (NASDAQ:RELY) said it swung to a net income of $6.5 million from a $12 million net loss in the same period last year. Revenues grew 34 percent to $411.8 million from $306 million in the same period last year. Following the strong results, Remitly Global, Inc. (NASDAQ:RELY) raised its growth outlook for the rest of the year, with revenues now targeted at $1.61 billion to $1.62 billion, versus the $1.54 billion to $1.587 billion expected previously. The updated figures would mark a year-on-year growth of 27 to 28 percent versus the 25 to 26 percent prior. Adjusted EBITDA was also expected at $225 million to $230 million, an improvement from the $195 million to $210 million targeted previously. For the third quarter alone, Remitly Global, Inc. (NASDAQ:RELY) was targeting to grow its revenues by 22 to 23 percent to $411 million to $413 million; and adjusted EBITDA at $53 million to $55 million. While we acknowledge the potential of RELY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
07-08-2025
- Business
- Globe and Mail
2 No-Brainer Fintech Stocks to Buy With $2,000 Right Now
Key Points American Express is a stalwart of premium credit cards and is increasingly attracting younger customers. Remitly Global's stock has been crushed, but it's still cheap despite concerns about immigration restrictions on its operations. Both stocks are good fintech companies to own for the long haul. These 10 stocks could mint the next wave of millionaires › Sometimes -- well, maybe most of the time -- the best thing an investor can do is keep it simple. Don't complicate your portfolio, don't chase the hottest sector trends, don't trade on margin. Stay consistent, and your wealth will start to compound if you keep focused on the long term. Nine times out of 10, this will beat the so-called advanced strategies purported to work by Wall Street. You don't have to start with large sums, either, to be a successful investor. With just a few thousand dollars, you can start generating compound returns by taking a few minutes to open up a brokerage account and buy stocks. Here are two no-brainer financial technology (fintech) stocks you can buy with just $2,000 right now. The American Express credit card ecosystem Founded in 1850, American Express (NYSE: AXP) is one of the oldest financial services companies. Its business has evolved many times over the years to serve the needs of U.S. travelers around the world. Today, it has an ecosystem of credit cards, travel rewards, and digital financial services catering to wealthier customers as well as businesses. The high fees for its Gold and Platinum cards come with rewards for dining, entertainment, and travel spending. These have led to partnerships with companies such as Hilton and several international carriers as well as Delta Air Lines. An increasing number of its newest cardholders are millennials and Gen Zers, drawn by its premium brand and its travel benefits. Last quarter, it added 3.1 million net new credit cards, with 63% of its consumer additions coming from these two age groups. These cardholders bring with them large lifetime value as they reach their prime spending years. Last quarter, revenue rose 9%, and adjusted earnings per share (EPS) climbed 17% due to operating leverage and steady share buybacks. This year, it expects EPS of $15 to $15.50. With the current share price at about $300, this gives it a forward price-to-earnings ratio (P/E) of less than 20. For a company that has a long growth runway for its credit card business, investors should have no problems buying and holding American Express for many years. Remitly Global's disruptive success Because of recent U.S. policy changes on immigration, the amount of remittances sent back to Mexico has begun to fall and were down 16% in June. This has caused investors to flee from Remitly Global (NASDAQ: RELY), whose shares are down almost 40% from highs set earlier this year. This drop is overplayed and reflects an underestimation of the growth potential for this disruptor specializing in remittance payments. Remitly has gained market share in such payments since being launched in 2011 due to its easy-to-use smartphone app, various payout methods, and lower fees than legacy competitors. In the first quarter, payments volume grew 41% year over year to $16.2 billion, greatly outpacing the industry averages. Growth may slow through the rest of 2025 if the Mexican corridor gets hit, but this is not a killer for the business. It has just an estimated 2% to 3% market share of international money transfers from individuals, a figure that can easily expand in the years to come. Mexico is just one of its corridors, and even if it is affected by new immigration policies temporarily, over the long run remittances have increased between the countries due to inflation and economic growth. Revenue rose 34% year over year in the first quarter and was $1.36 billion during the past 12 months. Assuming growth slows to 20% for the next three years, revenue will hit $2.34 billion. Profit was once elusive for the company, but it is beginning to rapidly increase its earnings power due to its growing scale. Last quarter, income was $11.4 million, with a 16.2% profit margin as measured according to adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Remitly has the potential to see much wider net income margins in the years to come. If profit margins can expand to 20%, annual earnings will grow to $469 million within three years. Today, the stock has a market cap of just $3.4 billion and a forward P/E of 7 based on these earnings estimates. Wall Street is overestimating how much new immigration policies will hurt Remitly's business in the coming years, making the stock dirt cheap for investors willing to hold for the long haul. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,026%* — a market-crushing outperformance compared to 180% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
10-07-2025
- Business
- Yahoo
Goldman Sachs Reiterated a Buy Rating on Remitly Global (RELY)
Remitly Global, Inc. (NASDAQ:RELY) is one of the . On June 17, Goldman Sachs analyst Will Nance reiterated a Buy rating on Remitly Global, Inc. (NASDAQ:RELY) without disclosing any price target. The reiterated bullish sentiment comes after the company reported its fiscal first quarter results for 2025 and raised its full-year outlook. Remitly Global, Inc. (NASDAQ:RELY) grew its revenue by 34% year-over-year, reaching $361.6 million. This was driven by a 29% growth in active customers and improved send volume, which grew 41% during the same time. A senior banker shaking hands with migrant customers in a corporate boardroom. Management now expects full-year revenue for 2025 to be in the range of $1.574 billion to $1.587 billion against the previous outlook of $1.565 billion to $1.580 billion. The outlook for adjusted EBITDA also improved from $180 million to $200 million to a range of $195 million to $210 million. Remitly Global, Inc. (NASDAQ:RELY) is a technology company that provides a digital platform for fast, reliable, and transparent cross-border money transfers to over 170 countries. While we acknowledge the potential of RELY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
