Is Global-E Online (GLBE) Setting Up for a Breakout?

Global-e Online Ltd. (GLBE) provides e-commerce solutions. It offers a platform to enable and accelerate global, direct-to-consumer cross-border e-commerce. The platform was purpose-built for international shoppers to buy seamlessly online and for merchants to sell from, and to, anywhere in the world…

Global-e Online Ltd. (GLBE) is a fairly recent IPO that essentially simplifies cross-border commerce by supporting multiple languages and currencies. In fact, the company has a first-mover advantage in a market with massive opportunity. So far, the firm has shown robust performance as management raised its full-year guidance.

As of the end of the second quarter the company had $488 million in cash, which compares favorably to only $3 million in cash. From a growth standpoint, things look up as analysts expect earnings to jump 185.7% next year.

However, the stock looks overvalued with a high price to sales ratio of 50.8. This is much higher than the industry average of 3.6 and the S&P 500’s 3.2. GLBE has been trending down since September as shown in the chart below.

Take a look at the 6-month chart of GLBE below with my added notations…

 See chart and continue reading at