Leading cross-border e-commerce enabler Global-e Online (GLBE -8.10%) has seen its stock drop 7% as of noon ET Wednesday, according to data provided by S&P Global Market Intelligence.
Global-e Online beat analysts' expectations after growing revenue by 28% and recording profitability for the second time in three quarters. The company also raised its full-year guidance to 31% sales growth.
Despite these results, Global-e's stock remains down 7% due to worries over how the company's operations will be affected by the new tariffs and the U.S. de minimis customs exemption ending.
Impressive results in tariff-y times
For the third time in as many quarters, Global-e's stock has dropped following earnings.
With revenue growing 42%, 30%, and 28% over these quarters, it is tough to argue that these sell-offs stem from poor operational results, though.
Instead, Global-e's 42% drop in 2025 seems to stem from factors outside its control.
Since the company's solutions enable its customers to sell products across borders, the ongoing tariff and de minimis changes in the U.S. have soured the market's outlook on Global-e's stock as they complicate cross-border trade.
Image source: Getty Images.
However, this may be a short-sighted outlook.
Last quarter, Global-e rolled out a new 3B2C (business-to-business-to-consumer) solution that "enables global brands to leverage their international footprint in order to partially offset costs due to tariffs."
This complex solution perfectly exemplifies how Global-e thrives amid uncertainty as it helps its customers "go global."
Yes, new tariffs and the de minimis exemption ending may weigh on cross-border trade over the short term. However, that could prove to be a long-term benefit for Global-e as it creates solutions to solve these challenges.
Now trading at 35 times free cash flow, Global-e looks like an outstanding business trading at a reasonable valuation.
