The Artificial Intelligence (AI) Stock Most Likely to Mint New Millionaires

Core Viewpoint - Remitly Global is perceived as a loser in the context of AI and stablecoin disruption, with its stock price dropping 69% from all-time highs despite significant revenue growth of over 500% in the past five years [1][2] Group 1: Company Overview - Remitly operates a remittance platform that offers lower fees than traditional wire transfers through direct banking connections and a mobile app, growing to 9.3 million active customers in the last quarter [4] - The company has faced investor concerns regarding the rise of stablecoin transactions and AI-driven tools potentially disrupting its business model [5] Group 2: Counterarguments to Disruption Fears - The narrative of disruption is considered misguided as obtaining necessary licenses for a remittance business is complex and cannot be easily achieved by a small team of coders [6] - Converting stablecoins to fiat currencies incurs overhead costs that AI cannot eliminate, and Remitly is already utilizing stablecoins to reduce transfer costs and customer fees [6] - Remitly is expanding its services beyond remittances, allowing customers to spend and store money on its platform, which opens new monetization opportunities [6] - The company is leveraging AI to enhance customer experience and automate support services, making them more cost-effective [6] Group 3: Financial Performance and Future Outlook - In the last quarter, Remitly's revenue grew by 26% year over year, with expectations of continued growth from management into 2026 [7] - The current market cap of Remitly is $3.27 billion, with long-term revenue projections exceeding $3 billion and adjusted EBITDA expected to be between $575 million and $600 million [9] - A projected net income of $400 million in 2026 would result in a forward P/E ratio of 8, indicating the stock is undervalued for its growth potential [10]