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Here's Why Global-e Online Stock Is Up Big Today

By Keith Noonan – Aug 17, 2021 at 12:06PM

Key Points

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The international e-commerce services stock is surging after strong Q2 results.

What happened

Shares of Global-e Online (GLBE -2.35%) are making big gains in today's trading session following strong second-quarter earnings results. The company's share price was up nearly 14% as of 11:30 a.m. EDT.

Global-e Online published its Q2 earnings results after the market closed Monday, delivering earnings that fell short of expectations but revenue and guidance that came in far ahead of the market's targets. The Israel-based e-commerce services company posted a net loss of $0.25 per share on revenue of $57.28 million, while the average analyst estimate had called for a per-share loss of $0.20 on revenue of $47.64 million. Sales were up 92% year over year in the quarter. 

A person looking at boxes in a living room.

Image source: Getty Images.

So what

In addition to the big sales beat, Global-e also issued encouraging guidance with its Q2 report. Management is targeting sales between $54.3 million and $56.3 million for the third quarter, well ahead of the average analyst's target for revenue of $48.4 million in the period. Adjusted EBITDA is projected to be between $2.8 million and $3.8 million, and Global-e is guiding for gross merchandise volume (GMV) to be between $328 million and $338 million in the period. 

The company now expects revenue for the year to come in between $227 million and $231 million, up from its previous target for sales to be between $209 million and $213.5 million. The average analyst target had called for revenue of roughly $211 million. Global-e also boosted its full-year GMV target to between $1.35 billion and $1.37 billion, up from its previous target for GMV between $1.21 billion and $1.255 billion.

Now what

Global-e is helping businesses manage e-commerce operations across borders, and it looks like it has a long runway for growth. The company's Q2 sales performance and guidance crushed the market's expectations, and analysts at firms including KeyBanc, Raymond James, Piper Sandler, and Jefferies Financial responded by issuing dramatic price target increases on the stock. 

Global-e Online now has a market capitalization of roughly $11.1 billion and is valued at roughly 48.5 times this year's expected sales. 

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Jefferies Financial Group Inc. The Motley Fool has a disclosure policy.

Stocks Mentioned

Global-e Online Stock Quote
Global-e Online
$21.99 (-2.35%) $0.53

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