Key Points Many technology stocks are down and cheap, even though AI is propelling the whole market higher. Coupang's stock is down because of investor worries about a recent data leak. Remitly Global is a fast-growing remittance provider with plenty of room to expand its operations. 10 stocks we like better than Remitly Global › If it seems like every technology stock is trading at an all-time high because of artificial intelligence (AI), then you need to broaden your investing horizons. Many s ...

Hunt small and gain big with this potential future stock market winner.The best stock performers -- the 10-baggers in your portfolio -- will typically come from small-cap picks. As market caps get larger, so does the hurdle for making your stock go up by 10x, making smaller better if you are looking for home run investments.One small-cap gem getting no love right now is Remitly Global (RELY 0.15%). Here's why the stock could be the next 10-bagger in your portfolio.NASDAQ : RELYRemitly GlobalToday's Change( ...

Core Viewpoint - Western Union's introduction of the U.S. Dollar Payment Token (USDPT) on Solana and the Digital Asset Network highlights the potential of stablecoins as an opportunity for remittance firms rather than a threat [1][2]. Group 1: Company Developments - Western Union shares increased by 6.5% following the announcement of USDPT and the Digital Asset Network [1]. - The Digital Asset Network will provide cash-out access at 380,000 Western Union agents, indicating a strategy to monetize stablecoin flows [2]. Group 2: Market Analysis - Analysts from William Blair anticipate that stablecoin remittances could enhance settlement speed, reduce pre-funding requirements, and improve capital efficiency, particularly in markets susceptible to inflation [2]. - Despite advancements in digital services, Western Union faces sluggish core money transfer growth and potential challenges from a remittance tax set to take effect in 2026 [3]. Group 3: Financial Metrics - Western Union's current dividend yield stands at 10%, with a low price-to-earnings ratio of 5.3x for 2026, which is expected to support the stock price [3]. - Following the market opening, WU shares rose by 2% to $9.68 [3].

Core Insights - Western Union is piloting stablecoin settlement solutions to reduce reliance on traditional banking systems [1][5] - The company views stablecoins as an opportunity rather than a threat, although it currently lags behind competitors like MoneyGram and Zepz [2][3] - Stablecoin wallets are particularly valuable in emerging markets where remittance inflows are crucial [4] Company Developments - CEO Devin McGranahan confirmed the pilot of stablecoin solutions on October 24 [1] - Western Union is expanding partnerships to enable customers to hold and move stablecoins [4] - The company aims to integrate stablecoins into its treasury operations for faster, more transparent, and cost-effective money transfers [5] Industry Trends - Other remittance providers, such as MoneyGram and Zepz, have already adopted stablecoin technology [3][7] - Major banks globally are exploring blockchain technology and stablecoin systems to enhance their payment solutions [8] - Traditional financial institutions are under pressure to innovate due to the rise of digital payment solutions, with SWIFT and major card networks actively developing their own blockchain capabilities [8]

Core Insights - Western Union is launching a stablecoin settlement pilot program aimed at reducing reliance on traditional banking systems and enhancing settlement efficiency and fund transparency [1] Company Overview - Western Union processes approximately 70 million transactions per quarter, covering over 200 countries globally [1]

Core Insights - XYRA Corp. is strategically expanding into Mexico's fintech and remittance markets, aiming to connect these two dynamic financial sectors [1][3] - The company is developing an AI-driven, quantum-secure payment infrastructure that integrates remittances with fintech through tokenization, enhancing financial inclusion [2][6] Industry Overview - Mexico is a significant financial hub, with a remittance corridor and a rapidly growing fintech ecosystem projected to reach $65 billion by 2033 [3] - The country sees millions of transfers from the U.S. weekly, supporting families and small businesses, while over 800 fintech startups provide credit access to millions of users [4] Current Challenges - Despite the growth, remittances and fintech have evolved separately, with traditional transfers taking 2-5 days and incurring fees over 6%, while local fintechs lack access to verified cross-border data [5] XYRA's Solution - XYRA's system allows U.S. users to send money converted into quantum-secure stablecoins, instantly settled in Mexican pesos and accessible via an XYRA credit card [7] - The platform employs post-quantum cryptography and AI to automate compliance, detect fraud, and generate real-time credit scoring, creating a self-reinforcing economic loop [7] Future Prospects - The integration of remittances and fintech is expected to transform traditional money transfers into long-term financial empowerment opportunities [8] - XYRA's initiative marks a significant milestone in bridging the gap between these two sectors, with plans for global expansion [8]

Core Insights - XYRA Corp. is strategically expanding into Mexico's fintech and remittance markets, aiming to connect these two dynamic financial sectors [1][3][8] - The company is developing an AI-driven, quantum-secure payment infrastructure that integrates remittances with fintech through tokenization, enhancing financial inclusion [2][6][7] Industry Overview - Mexico is a significant financial hub, with a remittance corridor and a rapidly growing fintech ecosystem projected to reach $65 billion by 2033 [3] - The country sees millions of transfers from the U.S. weekly, supporting families and small businesses, while over 800 fintech startups provide credit access to millions of users [4] Current Challenges - Despite the growth, remittances and fintech have evolved separately, with traditional transfers taking 2-5 days and incurring fees over 6%, while local fintechs lack access to verified cross-border data [5] XYRA's Solution - XYRA's system allows U.S. users to send money converted into quantum-secure stablecoins, instantly settled in Mexican pesos, and accessible via an XYRA credit card [7] - The integration reduces costs and settlement times, creating a self-reinforcing economic loop that empowers both senders and recipients [7][9] Future Prospects - The initiative marks a significant milestone for XYRA, positioning it for global expansion and establishing a bridge between fintech and remittances [8]

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].

Core Viewpoint - Western Union is exploring the launch of its own dollar-backed stablecoin to remain competitive in the remittance market, particularly in non-U.S. markets [2][4]. Group 1: Market Context - The remittance company is facing increasing competition from cryptocurrency-centered money movement operations [2]. - The passage of the GENIUS Act has encouraged several companies to capitalize on digital assets, aiming to provide a more cost-effective way to send money globally [3]. - Western Union's core business involves overseas money transfers that can take days, highlighting the need for innovation in this area [3]. Group 2: Strategic Initiatives - The potential stablecoin could serve as a savings account in U.S. dollars for customers in countries where regulators allow such activities [2]. - The company aims to leverage stablecoin technology to reduce friction in cross-border transfers, facilitate crypto-fiat conversions, and decrease reliance on intermediaries [6]. - The introduction of stablecoins could help Western Union adapt to the evolving financial landscape and compete with companies like PayPal in the cross-border transfer market [4][6]. Group 3: Financial Implications - Western Union's stock has declined due to heightened competition, prompting analysts to suggest that the company could become a target for acquisition by a cryptocurrency firm [4]. - The CEO indicated that the company would consider acquisition offers that reflect its perceived value [5]. - The ability to convert stablecoins into fiat currencies presents a significant opportunity for the company, especially in markets with harder-to-convert currencies [7].

Group 1: Remitly Global - Remitly Global is experiencing rapid growth in the remittance market, leveraging a mobile app and lower fees compared to traditional players [4][5] - The total transfer volume reached $16.2 billion last quarter, marking a 41% year-over-year increase, with a current market share of only 2%-3% [5] - Revenue grew by 34% year-over-year to $362 million, and the company achieved a positive net income of $11.4 million [5][6] - Remitly's asset-light model allows for reinvestment in product development and marketing, which is expected to drive future revenue growth [6] - As the business matures, profit margins are anticipated to expand to 20% or higher, with potential annual revenue reaching $2 billion and a long-term target of $5 billion [7] - The current market cap of Remitly is $3.77 billion, indicating a favorable valuation compared to its future earnings potential [8] Group 2: Interactive Brokers - Interactive Brokers is gaining market share in the brokerage industry by offering low-cost or free trading and a wide range of financial instruments [10][11] - Customer accounts increased by 32% last quarter to 3.62 million, with total client assets at $573.5 billion, demonstrating a high-end customer base [11] - The company boasts pre-tax profit margins of 74%, positioning it as one of the most profitable firms in the industry [12] - With a price-to-earnings ratio of 32, Interactive Brokers remains a strong hold for long-term investors as customer growth is expected to drive earnings and stock price higher [13]