Wall Street has divided virtually every company into a winner or a loser when it comes to artificial intelligence (AI) disruption. Remitly global (BUILDING ON 1.80%) is considered a loser in AI and in the emerging era of stablecoin disruption. Shares of the stock are down 69% from all-time highs, despite the company growing its revenue by more than 500% cumulatively over the past five years.
What if I told you that Remitly could actually be an AI winner? This is why this beaten stock will be successful in the coming years and will create a number of millionaires as long-term shareholders.
Image source: Getty Images.
The fear of disruption turns into opportunities
Remitly operates a remittance platform for individuals and small businesses. With direct banking connections and a smooth mobile app, the company can offer lower fees than traditional wire transfers, all from a smartphone. As a result, the company has grown from nothing ten years ago to 9.3 million active customers in the last quarter.
Investors are concerned about Remitly amid a rise in stablecoin transactions. Along with AI-powered encryption tools, there is a narrative that Remitly’s network could be disrupted, reducing the cost of international money transfers to zero and ruining Remitly’s business model.
This is misleading for a number of reasons. First, a small team of programmers cannot get the required licenses from every country needed to run a money transfer business. Second, converting stablecoins to fiat currency still involves overhead costs that AI cannot eliminate. Third, Remitly already uses stablecoins on its own balance sheet to minimize transfer fees, allowing it to reduce customer fees. Fourth, Remitly is expanding beyond money transfers by offering customers the ability to spend and store money on the platform, opening up new monetization opportunities. And fifth, Remitly uses AI to improve the customer journey and make automated customer support services more cost-effective.
A story about stablecoin and AI disruption is just that, a story, and one that Remitly should actually benefit from. Last quarter, Remitly’s revenue grew 26% year-over-year, with healthy margin expansion. More of the same is expected from management in 2026.
Today’s change
(-1.80%)$-0.28
Current price
$15.25
Key data points
Market capitalization
$3.2 billion
Day range
$15.04 -$15.70
Range of 52 weeks
$12.08 -$24.70
Volume
3.7 million
Avg. full
3.6 million
Gross margin
58.67%
Why Remitly Global shares can make millionaires
At the current share price, just under $16, Remitly has a market capitalization of $3.27 billion. Over the long term, management expects to generate more than $3 billion in revenues and $575 million to $600 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Even ignoring these adjusted earnings numbers, which are not the true earnings measure of any company, Remitly stock looks cheap to those with a multi-year time horizon.
Net income of $400 million in 2026 would give the stock a price-to-earnings (P/E) ratio of 8, which is incredibly cheap for a company with a long runway like Remitly. This makes the stock one that will likely make you a millionaire in the years to come if you buy today and hold forever.
