What Happened?
A number of stocks fell in the morning session after the strong payroll print (172,000, more than double the 80,000 consensus) confirmed the higher-for-longer narrative and sent the 10-year yield above 4.5%, compressing valuations across high-multiple digital platforms.
CME FedWatch shifted to price rate hike risk by year end (the first time this cycle) changing the directional signal investors had been using to justify premium multiples for growth-oriented internet businesses. The pressure was valuation-driven rather than earnings-driven.
Digital advertising, subscription, and platform business models remain structurally intact, but when the risk-free rate moves materially higher, the long-duration cash flows embedded in internet stock valuations are discounted more aggressively. The jobs report added a secondary consumer demand concern: higher rates mean tighter consumer credit and less discretionary spending on subscriptions and digital services, the revenue base on which these multiples rest.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Online Retail company Coupang (NYSE: CPNG) fell 3.5%. Is now the time to buy Coupang? Access our full analysis report here, it’s free.
- Financial Technology company Remitly (NASDAQ: RELY) fell 3.8%. Is now the time to buy Remitly? Access our full analysis report here, it’s free.
Zooming In On Remitly (RELY)
Remitly’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 29.2% on the news that the company reported strong fourth-quarter 2025 financial results that beat expectations, leading to its first full year of profitability.
For the fourth quarter, revenue climbed 25.7% year-on-year to $442.2 million, and its GAAP earnings per share of $0.19 significantly surpassed analyst estimates of $0.01. Looking ahead, Remitly provided an upbeat forecast, projecting first-quarter revenue of $437 million at the midpoint, which was above consensus. Furthermore, its adjusted EBITDA guidance for the full year 2026 of $350 million also came in well ahead of Wall Street's expectations, signaling confidence in its future profitability.
Remitly is up 43.2% since the beginning of the year, but at $18.93 per share, it is still trading 22% below its 52-week high of $24.28 from May 2026. Investors who bought $1,000 worth of Remitly’s shares at the IPO in September 2021 would now be looking at an investment worth $390.67.
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