What happened
Shares of Global-E Online (GLBE -1.53%) surged sharply higher Tuesday, jumping as much as 15.4%. At the end of the trading day, the stock was still up 15.3%.
The catalyst that sent the cross-border e-commerce platform soaring was bullish commentary courtesy of a Wall Street analyst who began covering the stock.
So what
Needham analyst Scott Berg initiated coverage 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% over the coming year, compared with the stock's closing price on Monday.
Image source: Getty Images.
The bullish call came in the wake of Global-E's record third-quarter financial results, which were released just last week. The company delivered revenue that grew 77% year over year, and excluding one-time charges related to its IPO in May, adjusted EBITDA surged 185%. At the same time, gross merchandise volume -- or the value of products sold on its platform -- increased 86%.
Additionally, Global-E's gross margin expanded to 38.6% from 30.2% in the prior-year period, as leverage from the company's cloud-based services kicked in.
Now what
Global-E also raised its full-year guidance on the heels of its record results. The company is now expecting revenue of roughly $240 million, which would represent growth of 348% from $53.6 million in the prior-year quarter.
The company's platform provides a host of tools for merchants that help reduce the complexity associated with international selling. It helps ease challenges including foreign language translation, inter-country regulatory compliance, currency exchange, local payment methods, and customs and duties.
As if to prove its value, Global-E not only scored a $193 million pre-IPO investment from e-commerce platform provider Shopify (SHOP 1.03%), but it was also selected as the exclusive provider of cross-border services for Shopify's 1.7 million merchants, which is quite a feather in the cap of the fledgling public company.
Given all the good news surrounding Global-E Online, it's easy to see why Wall Street is sitting up and taking notice.
