Actions of Global-E online (NASDAQ: GLBE) rose sharply on Tuesday, jumping to 15.4%. At the end of the trading day, the stock was still up 15.3%.
The catalyst that skyrocketed the cross-border ecommerce platform was a bullish comment courtesy of a Wall Street analyst who began to cover the stock.
Needham analyst Scott Berg launched a cover on Global-E Online with a buy rating, while also issuing a price target of $ 75. His new estimate would represent potential gains for investors of more than 35% in the coming year, from the stock’s closing price on Monday.
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The bullish call came on the heels of Global-E’s record third quarter financial results, which were released last week. The company achieved revenue that grew 77% year-over-year, and excluding one-time charges related to its IPO in May, Adjusted EBITDA jumped 185%. At the same time, the gross volume of goods – or the value of products sold on its platform – increased by 86%.
Additionally, Global-E’s gross margin increased to 38.6% from 30.2% in the prior year period, thanks to leverage from the company’s cloud services.
Global-E has also raised its annual forecast in the wake of its record results. The company now expects revenue of around $ 240 million, which would represent growth of 348% from $ 53.6 million in the previous year’s quarter.
The company’s platform provides a host of tools for traders that help reduce the complexity associated with international selling. It helps ease challenges including translation into foreign languages, inter-country regulatory compliance, currency exchange, local payment methods, and customs and duties.
As if to prove its worth, Global-E not only secured a $ 193 million investment ahead of the e-commerce platform provider’s IPO. Shopify (NYSE: SHOP), but it was also selected as the exclusive provider of cross-border services for Shopify’s 1.7 million merchants, which is a feather in the hat of the young public company.
Considering all the good news about Global-E Online, it’s easy to see why Wall Street is picking up and taking notice.
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Danny Vena owns shares of Global-e Online Ltd. and Shopify and has the following options: January 2023 long calls at $ 1,140 on Shopify and January 2023 long calls at $ 1,160 on Shopify. The Motley Fool owns shares and recommends Shopify. The Motley Fool recommends the following options: $ 1,140 long calls in January 2023 on Shopify and $ 1,160 short calls in January 2023 on Shopify. The Motley Fool has a disclosure policy.
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