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UBS has reiterated a Buy rating and $52.00 price target on Global-e Online Ltd (NASDAQ:GLBE). The firm’s assessment follows meetings with Global-e’s Co-Founder & CEO, CFO, and VP of Investor Relations, where discussions centered on the company’s 2025 outlook and its agreement with Shopify (NASDAQ:SHOP).
Global-e’s business has shown less volatility year-to-date compared to the same periods in 2023 and 2024, despite increased headline noise and uncertainty. While the stock has experienced a 39% decline over the past six months, the company’s strong current ratio of 2.47 and minimal debt-to-equity ratio of 0.03 demonstrate solid financial stability. The company experienced a dip in late Q1 2025 but has since recovered, according to UBS’s report.
The new Shopify agreement is expected to have a neutral to positive impact on Global-e’s overall bottom line. While some pricing discounts on the third-party side are anticipated, these will likely be offset by reductions in revenue sharing with Shopify. The first-party (Managed Markets) segment may face margin dilution due to revenue losses in payments and foreign exchange.
Global-e does not anticipate changes to its go-to-market approach, as system integrators and channel partners have become major sources of new merchant referrals. These partners represented approximately 62% of all Global-e contracts signed in 2024, reducing dependence on Shopify for customer acquisition.
The company views business-to-business commerce as a growth driver for 2027 or beyond, with "probable" mergers and acquisitions to gain capabilities in this area. Global-e is also evaluating potential acquisitions in the business-to-consumer segment to enhance capabilities in sophisticated shipping and reverse logistics. With revenue growing at 33.2% and analysts expecting continued strong growth, the company appears well-positioned for expansion. For deeper insights into Global-e’s growth potential and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Global-E Online Ltd reported robust first-quarter earnings, with adjusted earnings reaching $31.6 million, a significant increase from the previous year’s $21.3 million. The company’s revenue grew by 30% year-over-year to $189.9 million, driven by a 34% increase in gross merchandise volume to $1.24 billion. JMP analysts noted that the adjusted EBITDA of $31.6 million slightly exceeded market expectations, although the EBITDA margin decreased from the prior quarter. Global-E also maintained its full-year 2025 guidance, anticipating revenue between $917 million and $967 million and adjusted EBITDA of $179 million to $199 million.
In addition, Global-E announced a new 3-year strategic partnership agreement with Shopify, enhancing its position in the cross-border commerce sector. Benchmark analyst Mark Zgutowicz revised Global-E’s price target to $52, emphasizing the importance of the Shopify agreement. Needham maintained a Buy rating with a $40 target, suggesting the revised Shopify partnership could lead to increased volume over time. Meanwhile, Raymond (NSE:RYMD) James adjusted their price target to $55, citing strong fundamental trends despite potential risks. These developments reflect Global-E’s strategic moves amidst a complex global economic landscape.
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