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Remitly - AI Stock Analysis

Analysis generated May 10, 2025

Remitly is an online remittance service provider catering to individuals who need to send money across borders. It focuses on offering a fast, secure, and cost-effective alternative to traditional remittance services. The company’s innovation in digital solutions has helped it grow rapidly in the international money transfer industry, appealing to a wide demographic of users who seek convenience and efficiency in financial transactions.

Fundamental Analysis

Remitly’s financial performance shows both strengths and weaknesses. In the last quarter, the company's revenue was $352 million. This was a 4.57% increase compared to the previous quarter and a 32.91% increase compared to the same quarter last year. Such growth indicates a solid upward trajectory in revenue, a positive sign for investors.

However, the net income for the last quarter was $5.7 million. This figure represents a drastic decrease of 398.59% compared to the previous quarter, although it shows an 83.66% increase year-over-year. This discrepancy suggests volatility but also signifies that the company has improved its profitability over a longer period.

EBITDA stood at $2.1 million for the last quarter, a significant 63.49% decrease from the previous quarter. Nonetheless, year-over-year, it increased by 107.69%, which shows that the company is improving its operational efficiency in the long run. The insider selling observed in the last couple of months might be a bearish signal, indicating a potential lack of confidence from those within the company.

Technical Analysis

The current stock price of Remitly is $23.85, which is an increase of 19.19% from a month ago, pointing to a strong short-term upward trend. Compared to a year ago, the stock price has increased by 66.43%, suggesting robust long-term growth. The bullish trend is further corroborated by technical indicators: the current 10-day Simple Moving Average (SMA10) stands at $21.82, indicating a potential upward shift in price movement as it is higher than the previous SMA10 of $21.46.

The Relative Strength Index (RSI) is at 24, suggesting that the stock may be oversold. This could be a signal of a potential buying opportunity, in line with the current bullish trend.

Alternative Data Analysis

Examining alternative data provides additional insights into Remitly's current state. The company has 107 open job positions, a stable figure which implies a steady outlook. Employee sentiment remains neutral, indicating neither strong optimism nor pessimism within the company.

Regarding customer acquisition, Remitly has an estimated 16 million webpage visitors with no significant changes in the last few months. However, there’s a concerning trend in mobile app downloads, which have decreased by 38% over the last couple of months to around 15,000 downloads per day. This could indicate potential issues in attracting new customers or retaining existing ones.

From a customer engagement perspective, Remitly has 61,000 Instagram followers, a 9% increase in recent months, indicating rising interest. On Twitter, the following remains stable at 15,000. The AI score provided by AltIndex is 64, which is a buy signal. This composite score suggests positive future performance based on aggregated fundamental, technical, and alternative data analyses.

Conclusion

Overall, Remitly demonstrates strong revenue growth and improved year-over-year financial performance, despite recent quarterly declines in net income and EBITDA. The stock exhibits bullish trends in both the short and long terms, supported by a solid technical outlook. Alternative data suggests a stable operational environment but reflects potential challenges in customer acquisition and engagement.

Given these factors, a cautious but optimistic outlook is recommended for potential investors. The positive revenue growth, strong technical indicators, and favorable AI score suggest potential for continued appreciation. However, attention should be paid to the recent decline in mobile app downloads and insider selling, which could signal underlying issues. Therefore, it is advisable to monitor these trends closely and consider a measured approach to investing in Remitly's stock.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.