What Happened?
A number of stocks fell in the afternoon session as investors grappled with the intensifying U.S.-Israeli war on Iran and its wider economic implications.
The conflict triggered a rally in oil prices, magnifying the risks of stagflation, a challenging economic scenario of high inflation combined with slow growth. Reflecting these concerns, Goldman Sachs cut its outlook for U.S. economic growth, citing a 25% chance of a recession over the next year. This bleak forecast contributed to a broad market sell-off, with the S&P 500, Dow, and Nasdaq all dropping by around 1% as investors processed the growing geopolitical and economic uncertainty.
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:
- Social Networking company Pinterest (NYSE: PINS) fell 6.3%. Is now the time to buy Pinterest? Access our full analysis report here, it’s free.
- Financial Technology company Remitly (NASDAQ: RELY) fell 8.4%. Is now the time to buy Remitly? Access our full analysis report here, it’s free.
- Gig Economy company Angi (NASDAQ: ANGI) fell 7.6%. Is now the time to buy Angi? Access our full analysis report here, it’s free.
- Online Retail company Revolve (NYSE: RVLV) fell 3.4%. Is now the time to buy Revolve? Access our full analysis report here, it’s free.
- Financial Technology company Robinhood (NASDAQ: HOOD) fell 3.2%. Is now the time to buy Robinhood? Access our full analysis report here, it’s free.
Zooming In On Remitly (RELY)
Remitly’s shares are somewhat volatile and have had 14 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 previous big move we wrote about was 3 days ago when the stock dropped 2.7% on the news that geopolitical tensions in the Middle East caused a significant spike in oil prices, raising concerns about consumer spending and business costs. Fears of a wider conflict escalated, disrupting key shipping lanes through the Strait of Hormuz, a route for about a fifth of the world's oil supply. In response, crude oil prices jumped sharply, with Brent crude futures surging as much as 14%. For consumer-focused companies, this presents a dual threat: higher fuel costs can squeeze profit margins by increasing shipping and operational expenses, while also leaving consumers with less disposable income to spend on non-essential goods and services. The uncertainty led to a broad market sell-off as investors moved towards safe-haven assets like the U.S. dollar.
Remitly is up 18.1% since the beginning of the year, but at $15.61 per share, it is still trading 36.3% below its 52-week high of $24.49 from May 2025. Investors who bought $1,000 worth of Remitly’s shares at the IPO in September 2021 would now be looking at an investment worth $322.17.
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