Core Insights - Divisadero Street Capital Management's significant selloff of Remitly Global shares signals a shift in investor confidence regarding the company's position in the digital remittance market [1][8] - The reduction in holdings from approximately $94.68 million to just $1.00 million indicates a reevaluation of Remitly's long-term growth potential amidst changing market dynamics [2][3] Company Overview - Remitly Global has a market capitalization of $2.61 billion and reported a revenue of $1.54 billion with a net income of $20.99 million for the trailing twelve months [4] - The company's share price as of November 13, 2025, was $12.49, reflecting a 38.3% decline over the past year, significantly underperforming the S&P 500 by 48.83 percentage points [3] Business Model and Strategy - Remitly operates in the digital remittance industry, providing services across approximately 150 countries, primarily targeting immigrant families with cross-border financial needs [5][7] - The company's strategy focuses on leveraging technology to deliver secure and efficient money transfer services, emphasizing customer experience and addressing the unique needs of its target demographic [5][7] Market Dynamics - The competitive landscape has evolved, with digital-first competitors like Wise and various fintech wallets driving prices lower, while traditional banks and money-transfer operators are enhancing their offerings through promotions [9] - High customer acquisition costs and tightening regulatory requirements pose challenges for Remitly, necessitating a focus on expanding contribution margins as transaction volumes increase [9] Future Outlook - Investors are now closely monitoring Remitly's path to profitability and the stability of its customer base across different economic conditions [10] - If Remitly can successfully widen its margins without alienating core users, it may solidify its position in the evolving remittance ecosystem [10]

[Music] It is time to light the same play by sale just because of course questions with my presenter and then the lightning round is over. Are you ready Steve D. Light round question.Let's start with Tom in New Jersey. Tom, >> how you doing Jim. >> Doing well from New Jersey.>> All right. Um I would like to have your opinion of remittly global or >> well that's to remmit for immigrants to be able to remmit money and I think that is very challenged group right now and I don't think you want to be there. I'd ...

Core Viewpoint - The remittance provider Remitly is expanding its product offerings to adapt to the growing influence of stablecoins in the cross-border payment market, which has led to a significant decline in its stock price despite strong revenue growth [1][2][11]. Group 1: Product Expansion and Innovation - Remitly has introduced the Remitly Wallet, allowing its 8.5 million active customers to hold various currencies, including stablecoins [3]. - The company is partnering with payment provider Stripe to facilitate remittance transactions using stablecoins, enhancing the platform's value and customer adoption [4]. - Utilizing stablecoins on its balance sheet will enable Remitly to conduct real-time cross-border transactions, potentially reducing operating costs and improving customer value [4][5]. Group 2: Financial Performance and Market Position - In the last quarter, Remitly reported a 34% year-over-year revenue growth to $412 million, driven by a 40% increase in send volume, alongside a positive net income of $6.5 million [7]. - Despite the growth, Remitly's market share in total remittance payments globally is estimated to be below 5%, with significant revenue growth of nearly 100% year-over-year from outside North America, reaching $350 million [9]. - The stock is currently priced at $19 per share, with a market cap of $3.9 billion and revenue of $1.46 billion, indicating potential for doubling sales to $3 billion in the coming years [12]. Group 3: Investment Outlook - The current market conditions and the narrative surrounding stablecoins have led to a discount on Remitly's stock, despite its strong growth trajectory and resilience against immigration-related headwinds in the remittance market [11]. - With a projected net income margin of 20% on $3 billion in revenue, Remitly could achieve $600 million in net income, resulting in a forward price-to-earnings ratio of 6.5, suggesting the stock is undervalued [12][13].

Group 1: Digital Remittance Trends - Visa Inc.'s report indicates a significant shift towards digital remittance methods in North America, with 69% of U.S. respondents preferring apps for sending money and 61% for receiving, while in Canada, 65% favor digital platforms for both [1][9] - Only 5-8% of U.S. consumers continue to rely on cash or checks for remittances, with unexpected financial needs being the primary reason for money transfers, cited by 36% in the U.S. and 32% in Canada [2][9] Group 2: Consumer Concerns and Visa's Response - High transaction fees are a major concern, with 27% of U.S. users and 30% of Canadian users dissatisfied with the costs associated with digital money transfers [3][9] - Visa is investing in stablecoin technology to improve the speed, affordability, and security of remittances, while also addressing hidden charges associated with traditional methods [3][4] Group 3: Competitive Landscape - Mastercard is enhancing cross-border remittances through its Mastercard Move program, allowing transfers to nearly 10 billion endpoints in over 200 countries and piloting alias-based remittances for simpler transactions [5] - Remitly is expanding its remittance ecosystem by connecting banks, agents, and digital wallets across 170 countries, and is exploring AI-driven customer service tools and cryptocurrencies [6] Group 4: Financial Performance and Estimates - Visa's shares have increased by 11.6% year to date, outperforming the broader industry and the S&P 500 Index [7][9] - The Zacks Consensus Estimate for Visa's fiscal 2025 earnings suggests a 12.9% year-over-year growth, followed by 12.5% growth in the subsequent year [12]

Group 1: Investment Potential - The power of compound interest can significantly grow an initial investment, with $25,000 potentially turning into a million dollars in 40 years at a 10% annual rate [1] - Two promising technology stocks are identified for long-term investment to help achieve the million-dollar goal [2] Group 2: Airbnb Overview - Airbnb has disrupted the travel market with its home-sharing model, achieving $81.8 billion in gross spending and $11.1 billion in total revenue in 2024 [4] - 70% of Airbnb's spending comes from Western markets, with plans to expand into travel-heavy regions like Japan and Brazil over the next five years [5] - Airbnb has launched new product categories, Experiences and Services, to enhance its platform and attract more customers away from traditional hotels [6][7] Group 3: Airbnb Financial Metrics - Airbnb's current price-to-earnings (P/E) ratio is 32, reflecting its growth potential despite appearing expensive for value-focused investors [8] - The company has an operating margin of 22%, which is lower than competitors like Booking Holdings, indicating potential for margin improvement as the platform matures [8] Group 4: Remitly Overview - Remitly Global is disrupting the international money transfer market with a mobile application that offers lower fees, achieving a 41% year-over-year growth in send volume and 34% revenue growth [9] - The platform is now profitable, posting $11.4 million in net income last quarter, while processing over $15 billion in quarterly volume for 8 million customers [9][10] Group 5: Remitly Market Position - Remitly currently holds an estimated 3% market share in remittances, with potential to grow to 5%, 10%, and eventually 20% in the long term [10] - The company has a market cap of $4.6 billion and trailing revenue of $1.4 billion, indicating significant growth potential if it continues to capture market share [11]

Group 1: BILL Holdings, Inc - JP Morgan analyst Tien-tsin Huang hosted 17 payments and processing firms at the Global TMC Conference in Boston, maintaining an Overweight rating on BILL Holdings with a price target of $55 [1] - BILL is recognized as a category killer in SMB AP Automation, effectively displacing manual and legacy solutions, including paper check processing [1] - Huang sees potential for BILL to reclaim its status as a top growth name through cross-selling recent acquisitions, leveraging partnerships with banks and accountants, and helping SMBs reduce costs via automation [2] - Projected fourth-quarter revenue for BILL is $376 million with an adjusted EPS of $0.41 [2] - As of the last check, BILL's stock is down 0.41% at $46.07 [5] Group 2: Fiserv, Inc - Huang maintains an Overweight rating on Fiserv with a price target of $210, slightly down from $211 [2] - Fiserv is viewed as a dependable growth story, with mid-teens EPS growth driven by double-digit top-line growth, operating leverage, and capital deployment [3] - The company has a solid portfolio, including its Clover product, which is gaining market share and growing faster than peers [3] - Projected second-quarter revenue for Fiserv is $5.19 billion with an adjusted EPS of $2.39 [3] Group 3: Marqeta, Inc - Huang upgraded Marqeta's rating to Overweight from Neutral, with a price target of $6, up from $5 [4] - Marqeta's platform supports card programs in high-growth areas of fintech, including BNPL and digital banking, with notable clients like Block and Affirm [4] - Projected second-quarter revenue for Marqeta is $140 million with an adjusted EPS of $(0.05) [4] Group 4: Remitly Global, Inc - Huang has an Overweight rating on Remitly with a price target of $25, viewing it as a mission-driven disruptor in the remittance market [5] - Remitly is experiencing durable growth with a 34% year-to-date revenue increase and 4% market penetration [5] - Projected revenue CAGR for Remitly through 2027 is 21%, one of the highest in Huang's coverage [5] - Projected second-quarter revenue for Remitly is $385 million with an adjusted EPS of $0.19 [5]

Core Viewpoint - AppLovin Corporation is expected to report strong year-over-year revenue growth in its first-quarter 2025 results, primarily driven by the expansion of its Software Platform segment [1] Revenue Estimates - The consensus estimate for Software Platform revenues is $1.05 billion, reflecting a significant 54.3% increase compared to the prior-year quarter, driven by the AXON 2.0 technology [2] - Total revenues for AppLovin are projected to reach $1.38 billion, indicating a robust 30.2% increase from the year-ago quarter, highlighting the effectiveness of strategic expansion efforts [3] Profitability Expectations - The consensus estimate for Software Platform's adjusted EBITDA is $829.4 million, implying a 68.6% year-over-year growth, while the overall adjusted EBITDA for AppLovin is expected to decrease by 16.8% year over year [4] Earnings Per Share - Earnings per share are anticipated to show a substantial 116.4% increase, with the Zacks Consensus Estimate at $1.45, underscoring AppLovin's ability to leverage its technology-driven business model [5]

Core Viewpoint - BlackSky Technology Inc. (BKSY) is expected to report its first-quarter 2025 results on May 8, with a history of earnings surprises that has not been favorable, lagging the Zacks Consensus Estimate in three of the last four quarters and beating once, resulting in an average negative surprise of 12.9% [1]. Revenue Expectations - The Zacks Consensus Estimate for BKSY's revenues is $27.5 million, reflecting a year-over-year increase of 13.6%, driven by increased subscription orders for imagery and analytics, renewals from existing clients, and new contracts for professional and engineering services [2]. Earnings Projections - The consensus estimate for BKSY's earnings is a loss of 47 cents per share, which is an improvement from the prior year's loss of 88 cents, attributed to enhanced operating leverage from higher revenues and improved gross margins [3]. Earnings Prediction Model - The model does not predict an earnings beat for BKSY this time, as it has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell), indicating a lack of favorable conditions for an earnings surprise [4][5].

Core Viewpoint - Gartner Inc. is set to release its first-quarter 2025 results on May 6, with a history of exceeding earnings estimates, averaging a surprise of 23.5% over the past four quarters [1]. Group 1: Revenue Expectations - The Zacks Consensus Estimate for Gartner's total revenue is $1.5 billion, reflecting a 4.2% increase from the same quarter last year [2]. - Research segment revenues are expected to reach $1.3 billion, indicating a year-over-year growth of 4.6%, driven by increased Global Technology Sales contract value and improved contract value from tech vendor clients [3]. Group 2: Segment Performance - Consulting revenues are estimated at $113.1 million, suggesting a decline of 16.1% compared to the previous year [4]. - Conference revenues are projected at $92.8 million, also indicating a 16.1% year-over-year decline [4]. Group 3: Earnings Projections - The consensus estimate for earnings per share (EPS) is $2.72, representing a year-over-year decline of 7.2%, attributed to rising operating expenses [4]. - Gartner currently has an Earnings ESP of -0.40% and a Zacks Rank of 4 (Sell), indicating a lower likelihood of an earnings beat this quarter [5].

Core Viewpoint - Sezzle Inc. is set to release its first-quarter 2025 results on May 7, with expectations of significant revenue and earnings growth compared to the previous year [1][2][3]. Revenue Expectations - The Zacks Consensus Estimate projects revenues at $64.8 million, reflecting a 37.9% increase from the same quarter last year, driven by a larger subscriber base and a partnership with WebBank [2]. - The introduction of Sezzle On-Demand allows non-subscribers to access the Sezzle Platform, contributing to anticipated revenue growth [2]. Earnings Projections - The consensus estimate for earnings stands at 32 cents per share, indicating a 45.5% year-over-year increase, supported by strong revenue gains and disciplined cost management [3]. - However, the current model does not predict an earnings beat for Sezzle, with an Earnings ESP of -15.41% and a Zacks Rank of 3 [4][5].