Yahoo Finance Why Remitly (RELY) Stock Is Up Today
What Happened:
Shares of online money transfer platform Remitly (NASDAQ:RELY) jumped 9.4% in the morning session after the company reported second-quarter earnings results. Remitly added new buyers this quarter, which helped it beat analysts' revenue expectations and enabled the company to lift its full-year revenue guidance. It also beat Wall Street's EPS estimates. Overall, we think this was a really good quarter that should please shareholders.
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What is the market telling us:
Remitly's shares are not very volatile than the market average and over the last year have had only 10 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago, when the stock gained 24.5% on the news that the company reported fourth-quarter results that exceeded Wall Street's revenue and EPS expectations. The company also recorded strong user growth as active customer count grew 41% year on year, and came in ahead of analysts' expectations. Gross margin also improved significantly during the quarter. Looking ahead, revenue guidance for the full year came in ahead of consensus. Zooming out, this was an impressive quarter that should delight shareholders.
Remitly is down 26.5% since the beginning of the year, and at $13.98 per share it is trading 49.3% below its 52-week high of $27.59 from October 2023. Investors who bought $1,000 worth of Remitly's shares at the IPO in September 2021 would now be looking at an investment worth $288.34.
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