With the Nasdaq Composite (^IXIC 2.61%) down roughly 12% from its highs, many tech-related stocks have sold off heavily.
Making matters worse, some of these stocks just reported earnings that were less than perfect (according to the market), giving them a double whammy of negativity. Add in the uncertainty around tariffs at the moment, and the market has sold off numerous otherwise high-quality businesses out of fear.
One company squarely at the intersection of this trio of headwinds is global e-commerce enabler Global-e Online (GLBE 0.47%)
However, while the market has sent Global-e shares down 42% from their 2025 highs, I believe now is the time to buy the spectacular tech stock. Here are four reasons why it is a promising investment today.
1. Global-e Online is the leading force in a massive market
Selling products globally is often such a complicated task that most small businesses (and even some enterprise-sized companies) either can’t do it effectively, or don’t believe it is worth the hassle to even try.
That’s where Global-e Online’s end-to-end, global e-commerce platform takes over. Helping merchants in 30 countries (and counting) sell to over 200 countries across the globe, the company offers an array of solutions, including:
- Local pricing in 100-plus currencies
- Over 150 payment options
- Shipping options from more than 20 providers, along with local returns
- Messaging in over 30 languages
- Guaranteed calculations for local import duties and tariffs
- Zero-risk payment fraud management and assistance
- Know-how and data on each local market
Just how complex are these solutions?
Despite being one of the leaders in the e-commerce realm, Shopify chose to invest in and partner with Global-e rather than build out its own cross-border solutions. Powered by Global-e’s platform, the two combined to create Shopify Management Markets, which lets interested merchants in Shopify’s ecosystem sell in foreign markets. With 10,000 merchants using the service in just 18 months after its launch, it seems there is plenty of interest in doing so.
While businesses can try to go it alone when they sell internationally, they may be leaving money on the table. Merchants that switched to Global-e’s platform averaged a 40% uplift in international traffic conversion.
Global-e’s merchants are growing their gross merchandise volume by four to five times faster than the global e-commerce growth rate of 8% in 2024, demonstrating the company’s growth potential.
Increasing revenue by 32% in 2024 and guiding for 25% growth in 2025, Global-e should continue to rapidly gain share of a target addressable market that it believes is worth $3 trillion.
2. Tariffs and Global-e
While this guidance for 25% sales growth in 2025 was enough to keep me happy, it didn’t impress the market. Worried about the impact higher (or new) tariffs in the United States could have on Global-e’s business, the market seemed to take a sell-first, ask-questions-later stance on the stock.
However, co-founder and president Nir Debbi downplayed the impact of these tariffs during the company’s fourth-quarter earnings call — even hinting that they could be a long-term benefit, stating:
We do believe that there will be uncertainty. It might affect short-term consumption. But overall, in the longer term, we do expect it will behave the same way we’ve seen in Brexit, where overall, it created much more demand for our services.
Put together, there will probably be short-term troubles, but they may create long-term value. To me, that’s a Foolish opportunity.
3. Improving margins hint at a wide moat
Lost amid Global-e’s “disappointing” Q4 results was the fact that the company reached break-even profitability for the first time in the quarter and expects to remain profitable going forward. Over the last two years, the company’s margins have rapidly improved, serving as a testament to the wide moat it is building around its operations.
GLBE Gross Profit Margin and Profit Margin (Quarterly) data by YCharts.
Global-e’s net dollar retention (NDR) rate of 123% or higher over the last four years also reinforces the idea that the company is building a wide moat. Measuring how much existing customers increase their sales from one year to the next, an NDR consistently above 120% shows that Global-e’s solutions are almost a “no-brainer,” and merchants are happy to spend more each year.
4. An all-time low valuation
Best yet for investors, despite Global-e’s leadership position, improving margins, and widening moat, the company trades at an all-time low valuation.
GLBE P/S and P/FCF Ratio data by YCharts.
Trading at 37 times free cash flow (FCF) — just slightly north of the S&P 500‘s (^GSPC 2.13%) average price-to-FCF ratio of 32 — Global-e’s growth (which is multiples higher than the market’s) appears cheaply priced.
Already one of my core holdings, I will be looking to add to Global-e Online soon as the company continues to forge its path as the leading global e-commerce enabler.
