3 reasons to buy Global-e stock like there’s no tomorrow

2023 is over. One thing we can be sure of is that the winner of 2024 will not necessarily be the same as the winner of 2023. But many companies will, because great companies that achieve their goals and capitalize on opportunities are more likely to continue to perform well and earn the trust of investors.

global-e online (GLBE -0.24%) It ended the year with a 92% gain, and there’s plenty of reason to believe it can maintain that in 2024. Here are three of them:

1. Almost every ecommerce retailer needs it.

Global-e operates a platform for cross-border e-commerce solutions. The main reason Global-e has grown so dramatically is because its services are a given for e-commerce retailers. Any ecommerce company serious about expansion can benefit from signing up to one of Global-e’s packages.

The platform can be used by businesses of all sizes, from small websites with e-commerce capabilities to large public enterprises. Top global retailers include: walt disney and LVMH Not only as a client, but also many smaller companies you’ve never heard of before. Regardless of size or industry, customers can connect Global-e’s integrations to their websites and offer localized payments, instant custom calculations, nearly 100 currencies, and more.

These services open up a huge new market for your customers and are a sure way to increase your sales. Global-e has many testimonials on how customers have signed up for its services and seen higher sales. We have a strong pipeline of new customer onboarding for the third quarter of 2023, such as Tory Burch and Bang & Olufsen, and our own growth has been phenomenal.

Third quarter sales increased 27% year-over-year, and total merchandise volume increased 35%. Consider that these are pressured times for retailers, and that this is spilling over into Global-e’s sales. These numbers will accelerate as inflation eases and spending increases.

2. It has a lucrative partnership with Shopify.

Shopify We were an early investor in Global-e and are working to launch a new integration between Global-e and our merchant client sites. It recently launched Shopify Markets Pro, a white label service that powers Global-e’s platform, and Global-e said it has “received a great response” from its seller community.

This could greatly benefit Global-e’s business in the coming quarters. CFO Ofer Koren said management expects growth to accelerate next year based on this partnership, general business expansion and improving consumer sentiment.

But it doesn’t end with Shopify. Global-e also recently signed a contract. Wix.com (NASDAQ: WIX) We provide white label services. These types of contracts could be another growth driver.

3. Getting closer to profitability

Global-e was close to net income when it went public, but its net loss widened between stock-based compensation, warrant impairment related to Shopify’s investment in the company, and overall downsizing. But I’m recovering. Gross profit and margins increased, highlighting profit potential along with sales.

GLBE Revenue (Quarterly) Data by YCharts

Otherwise, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is a good proxy for earnings improvement while eliminating some of the costs associated with going public. That’s up from $12.5 million last year to $22.1 million in the third quarter of this year, and management doubled its full-year guidance at the midpoint after the third quarter from about $3 million to $92 million last year. Net loss is also improving, from $64 million last year to $33 million in the most recent quarter.

One thing that Global-e stock isn’t cheap. It is trading at 12 times its 12-month sales. Although it is much lower than before. Investors are willing to pay for these stocks because the opportunity is so attractive. We expect Global-e shares to soar this year as growth accelerates and profits improve.