Why Shares of Global-e Online Are Sinking Today

Key Points

• Global-e Online's platform solves the complexities of selling products globally.

• It continues to grow its sales and improve its profitability, despite the challenging operating environment.

• Ultimately, the short-term problems plaguing Global-e's stock now could be its long-term opportunity.

• 10 stocks we like better than Global-E Online ›

Leading cross-border e-commerce enabler Global-e Online (NASDAQ: GLBE) has seen its stock drop 7% as of noon ET Wednesday, according to data provided by S&P Global Market Intelligence.

Global-e Online beat analysts' expectations after growing revenue by 28% and recording profitability for the second time in three quarters. The company also raised its full-year guidance to 31% sales growth.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Despite these results, Global-e's stock remains down 7% due to worries over how the company's operations will be affected by the new tariffs and the U.S. de minimis customs exemption ending.

Impressive results in tariff-y times

For the third time in as many quarters, Global-e's stock has dropped following earnings.

With revenue growing 42%, 30%, and 28% over these quarters, it is tough to argue that these sell-offs stem from poor operational results, though.

Instead, Global-e's 42% drop in 2025 seems to stem from factors outside its control.

Since the company's solutions enable its customers to sell products across borders, the ongoing tariff and de minimis changes in the U.S. have soured the market's outlook on Global-e's stock as they complicate cross-border trade.

Image source: Getty Images.

However, this may be a short-sighted outlook.

Last quarter, Global-e rolled out a new 3B2C (business-to-business-to-consumer) solution that "enables global brands to leverage their international footprint in order to partially offset costs due to tariffs."

This complex solution perfectly exemplifies how Global-e thrives amid uncertainty as it helps its customers "go global."

Yes, new tariffs and the de minimis exemption ending may weigh on cross-border trade over the short term. However, that could prove to be a long-term benefit for Global-e as it creates solutions to solve these challenges.

Now trading at 35 times free cash flow, Global-e looks like an outstanding business trading at a reasonable valuation.

Should you invest $1,000 in Global-E Online right now?

Before you buy stock in Global-E Online, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Global-E Online wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,863!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 13, 2025

Josh Kohn-Lindquist has positions in Global-E Online. The Motley Fool has positions in and recommends Global-E Online. The Motley Fool has a disclosure policy.