Remitly Global (RELY) Slid Despite Posting Strong Results

Market Overview - U.S. equity markets in Q4 2025 were influenced by optimism around potential monetary easing and caution regarding economic growth and valuations [1] - Strong AI-related earnings and a rate cut by the US Federal Reserve in October initially drove market gains, but sentiment cooled later due to mixed signals from the Fed [1] - Large-cap stocks rose 17.4% for the year and 2.4% in the quarter, while small caps gained 12.8% for the year and 2.2% in the quarter [1] - Value stocks outperformed growth stocks, returning 3.3% versus 1.2% for the quarter [1] Fund Performance - Meridian Growth Fund delivered a return of -0.39% (net) in Q4 2025, underperforming the Russell 2500 Growth Index's return of 0.33% [1] - The firm is monitoring factors affecting market returns, including potential changes in monetary policy and the sustainability of AI investments due to high valuations among hyperscalers [1] Company Focus: Remitly Global, Inc. - Remitly Global, Inc. (NASDAQ:RELY) was highlighted as a leading relative detractor for the Meridian Growth Fund in Q4 2025 [2] - The company offers digital financial services for immigrants and has a market capitalization of $3.008 billion [2] - Remitly's stock traded between $12.08 and $27.32 over the past 52 weeks, closing at $14.39 on January 26, 2026 [2] - Despite robust quarterly earnings, Remitly's stock underperformed due to management's guidance indicating a deceleration in revenue growth [3] - The tempered outlook is attributed to challenging year-over-year comparisons and immigration-related headwinds affecting remittance volumes [3] - Remitly continues to expand its market presence despite a temporarily subdued demand environment [3]