Down 30% This Year, Is It Finally Time to Buy Global-e Stock?

As inflation stays strong, many consumer-facing companies have been struggling to grow, and the market is pricing worries about the future into many stocks. Global-e Online (NASDAQ: GLBE) isn't a consumer-facing company, but it provides cross-border e-commerce services for a growing list of high-profile retailers, and its stock has been dropping.

Down 30% this year, is it finally a buy?

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High fashion from anywhere

Global-e's platform makes it easy for any retailer worldwide to sell globally. It integrates into an existing e-commerce presence and offers checkout in 100 currencies to 200 countries. It provides instant customs calculations as well as an array of shipping options and costs.

It has attracted a who's who of upscale and luxury brand names, including clients like LVMH, Hugo Boss, and Michael Kors, and it also services more mass-consumer names through its acquisition of Borderfree.

Global-e has a long pipeline of new business and onboards new clients every quarter. In the 2026 first quarter, that included Hong Kong-based Shanghai Tang and swim company Andie Swim, in addition to many others, as well as several expansions, such as LVMH's Fresh brand and expanded markets for Alo Yoga. Global-e also has a partnership with e-commerce giant Shopify, which offers its white-label services through Shopify Managed Markets.

Global-e has also been able to bring products to market to meet the changing retail landscape. It launched a duty drawback feature last year that helps clients reclaim duties from returned products, and it's using artificial intelligence (AI) to increase capacity without increasing costs.

The company has been reporting strong growth despite the challenging retail climate. Revenue increased 33% year over year in the first quarter, with a 40% increase in gross merchandise value (GMV). Adjusted gross margin improved from 45.4% to 47% year over year, and adjusted net income increased from $32.4 million to $46.9 million.

Global volatility and valuation

Despite the strong performance, the market has been concerned about how the Iran war is impacting the company. Management said that about 5% of GMV goes to countries affected by the war, and that even though there was a "temporary and partial reduction" in the second half of the quarter, trends have been improving.

There's also the inflation piece. The Consumer Price Index (CPI) increased 3.8% over the last 12 months, the highest increase in three years. That was also impacted by the Iran war, since oil prices spiked.

Global-e stock trades at 50 times trailing-12-month earnings. While it deserves a premium for its high growth, it makes the stock more likely to drop if there are any problems or concerns. Global-e has a growing, niche business and could be a great long-term pick, but expect volatility in the near term.

Jennifer Saibil has positions in Global-E Online. The Motley Fool has positions in and recommends Global-E Online and Shopify. The Motley Fool recommends Lvmh Moët Hennessy-Louis Vuitton, Société Européenne. The Motley Fool has a disclosure policy.