Staggering Growth Company Plummeted by 50% - Purchase at Discounted Rates in Abundance
Global-e Online: A Growing Force in International E-commerce
Global-e Online, a founder-led growth stock, is making waves in the global cross-border e-commerce industry. The company, operated by Global-e Commerce Ltd., headquartered in Israel, is known for its solutions that help retail and brand merchants sell internationally.
Despite trading near its lowest-ever valuation, Global-e has been inking deals with major retailers and brands such as Manchester United, FC Barcelona, Adidas, Victoria's Secret, and LVMH. The company's partnership with Shopify, an e-commerce juggernaut, further demonstrates its wide moat in the industry.
Global-e has seen significant growth since 2019, with its annual GMV per active merchant cohort growing four times. In 2020, the company added new merchants that did $287 million in gross merchandise volume (GMV). By 2024, this number had quadrupled.
The company's growth potential is promising, despite battling short-term tariff headwinds. Management believes Global-e's free-cash-flow margin could grow to 26% to 28% over the long haul.
Global-e offers a full suite of global e-commerce enablement solutions, including region-specific pricing, over 150 payment options, local messaging, shipping options, tariff calculations, zero-risk payment fraud, and local-market knowledge.
The payback period on new merchants for Global-e is less than nine months across multiple geographies. The company has a partnership with Shopify for Shopify Managed Markets, processing transactions for over 10,000 merchants in 175 countries. Global-e Online is expanding its supported countries to include the Czech Republic, Hungary, and Indonesia.
Global-e's operations are tied to tariff volatility, which may create short-term uncertainty but also long-term opportunities. The company's stock is down 50% from its highs due to concerns about tariff impacts, but its price-to-free-cash-flow ratio is reasonable.
Looking ahead, Global-e expects to grow sales by 24% when it reports second-quarter earnings on Aug. 13. The global B2B e-commerce market is worth roughly $20 trillion in 2024, presenting a significant growth opportunity for Global-e.
In essence, Global-e Online is a growth stock that helps merchants sell internationally, with a strong foundation, strategic partnerships, and a promising future in the rapidly growing e-commerce industry.
