12 Best Growth Stocks Under $25 to Buy Now

6. Remitly Global, Inc. (NASDAQ:RELY)

Number of Hedge Fund Holders: 29

Share Price as of January 8, 2024: $23.21

Remitly Global, Inc. (NASDAQ:RELY) is a financial services company that allows people to send and receive money online from the United States. The company has a motive to help immigrants in the United States support their families back home, enhancing the sentimental value associated with the brand. In addition to that, the company also funds charities and programs to enhance the financial and social position of immigrants in the United States and their families. Over the years, the company has expanded to Europe, partnered with prominent names, and urged state organizations to enhance the financial and social inclusion of immigrants.

Aligning with its goals, Remitly Global, Inc. (NASDAQ:RELY) is leveraging machine learning to prevent fraud and minimize interventions. The company uses ML models to assess and detect thousands of transactions every hour, allowing them to prevent identity theft and credit card fraud with precision. In 2023, the company has been able to reduce the rate of fraud by more than 25% compared to 2022. At the same time, the company saw a 30% decline in its rate of transaction loss. Similarly, on December 10, the company launched a Trust and Safety Center in partnership with Get Safe Online to educate users on fraud and scams online.

Investors are bullish on the stock because of its fundamentals, expanding market share, and a solid growth trajectory. Night Watch Investment Management stated the following regarding Remitly Global, Inc. (NASDAQ:RELY) in its Q4 2024 investor letter:

“The US consumer has been in a 2-year affordability crisis. As a result, there are many quality consumer businesses available at very attractive prices. However, we don’t currently see a reason why US consumer spending should rebound from its current depressed level. We will therefore limit ourselves to companies with company-specific growth drivers. An example is Remitly Global, Inc. (NASDAQ:RELY) which we acquired around $13 after the stock sold off excessively on an earnings miss in Q1, despite the 30% growth on the back of market share gains. Valuation is very attractive when considering that marketing expenses are a discretionary reinvestment into the business.”