Why global-e stock is again at the top of the market today

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what happened

Niche e-commerce company Global-e Online (GLBE 5.48%) The stock market was fine on Thursday – its second straight day of market-beating gains. Its shares were enjoying a nearly 4% gain at the end of the trading session after Wednesday’s 2.5% improvement, with continued bullishness stemming from two beneficial factors.

so what

On Wednesday morning, Autonomous Research initiated coverage on Global-E stock. To the delight of e-commerce experts and its investors, Autonomus has tagged with an outperform (in other words, buy) recommendation, with a price target of $28 per share. This implies a hefty premium of around 22% to the share’s current level.

The reasoning behind this quite bullish analysis was not immediately clear. Its publication, however, was closely followed by another positive catalyst for Global-e.

This is a buy from that ever-reliable stock price mover, Cathy Wood of Arc Invest. The renowned investor’s corporate vehicle Global-e loaded up on the stock on Monday, picking up more than 68,000 shares. Many investors prefer to follow Wood’s lead, or at least look more positively at the stocks that ended up in his portfolio, so Global is benefiting from that dynamic.

what now

Arc Invest isn’t the only powerhouse market player digging into takedown stocks With the usual optimism that blanketed the market in January and low prices, many people and institutions are loading up on take-down stocks.

While it is too soon to consider this a strong and sustainable rally, many companies that did not receive a fair shake from investors in 2022 are being re-evaluated. Global is one of those companies, though we should note that its revenue growth has slowed lately and it routinely posts bottom-line losses.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Global-e Online. Motley Fool has a revealing policy.


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