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Why Global-e Stock Topped the Market Again Today
What happened
Niche e-commerce company Global-e Online (NASDAQ: GLBE) was having a fine Thursday on the stock market — its second consecutive day of market-beating gains. Its shares were enjoying a nearly 4% rise late in the trading session, following Wednesday’s 2.5% improvement, on continued bullishness arising from two beneficial factors.
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So what
Wednesday morning, Autonomous Research initiated coverage on Global-e stock. Happily for the e-commerce specialist and its investors, Autonomous tagged it with an outperform (buy, in other words) recommendation at a price target of $28 per share. That implies a hefty premium of nearly 22% on the shares’ current level.
The reasoning behind this quite bullish analysis wasn’t immediately evident. Its publication did, however, closely follow another positive catalyst for Global-e.
This is a buy from that ever-reliable stock price mover, Ark Invest’s Cathie Wood. On Monday the celebrated investor’s corporate vehicle loaded up on Global-e stock, scooping up more than 68,000 shares. Many investors like to follow Wood’s lead, or at least more positively view stocks that end up in her portfolio, so Global-e is benefiting from that dynamic.
Now what
Ark Invest isn’t the only powerhouse market player digging into beaten-down tech stocks. Fueled by the usual optimism that blankets the market in January and low prices, many people and institutions are loading up on beaten-down tech stocks.
While it’s too soon to consider this a strong and sustained rally, many companies that didn’t get a fair shake from investors in 2022 are being reevaluated. Global-e is one of those companies, although we should bear in mind that its revenue growth has slowed lately, and it habitually posts bottom-line losses.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Global-e Online. The Motley Fool has a disclosure policy.