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Should You Maintain Your Position in Remitly Global (RELY)?

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. Major index returns increased throughout the quarter due to strong earnings from large-cap technology companies, especially those connected to artificial intelligence. In the second quarter, the fund returned -1.86% (net) outperforming the benchmark, the Russell 2500 Growth Index’s -4.22% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Meridian Growth Fund highlighted stocks like Remitly Global, Inc. (NASDAQ:RELY), in the second quarter 2024 investor letter. Remitly Global, Inc. (NASDAQ:RELY) is a digital financial services provider for immigrants, their families, and other citizens. The one-month return of Remitly Global, Inc. (NASDAQ:RELY) was -0.51%, and its shares lost 44.19% of their value over the last 52 weeks. On September 13, 2024, Remitly Global, Inc. (NASDAQ:RELY) stock closed at $14.55 per share with a market capitalization of $2.826 billion.

Meridian Growth Fund stated the following regarding Remitly Global, Inc. (NASDAQ:RELY) in its Q2 2024 investor letter:

“Remitly Global, Inc. (NASDAQ:RELY) is a digitally native money transfer company that is taking share in the remittance market from established competitors such as Western Union and MoneyGram. The stock underperformed during the period on slightly lower than expected net new customers, though the company beat top-line EBIDTA estimates and reaffirmed positive guidance for the year. We are not concerned about the softness in net new customers in the historically slow post-holiday period and continue to have confidence in the business model and management team. As such, we maintained our position during the quarter.”

A senior banker shaking hands with migrant customers in a corporate boardroom.

Remitly Global, Inc. (NASDAQ:RELY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Remitly Global, Inc. (NASDAQ:RELY) at the end of the second quarter which was 21 in the previous quarter. While we acknowledge the potential of Remitly Global, Inc. (NASDAQ:RELY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Remitly Global, Inc. (NASDAQ:RELY) and shared the list of best new tech stocks to buy. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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