Why Global-E Online Ltd. (GLBE) Plummeted on Wednesday

We recently compiled a list of the 10 Stocks Plummet on Wednesday. In this article, we are going to take a look at where Global-E Online Ltd. (NASDAQ:GLBE) stands against the other stocks.

The stock market ended firmer on Wednesday, with all major indices finishing in the green territory as investors weighed news of President Donald Trump’s imposition of a new round of tariffs while digesting minutes of the Federal Reserve.

The Dow Jones rose by 0.16 percent, the S&P 500 increased by 0.24 percent, while the tech-heavy Nasdaq eked out a 0.07 percent gain.

Ten companies bucked a broader market optimism, posting heavy losses, mostly due to disappointing earnings performance last year.

To come up with Wednesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A shopper browsing through products online from the comfort of their home.

Global-E Online Ltd. (NASDAQ:GLBE)

Global-E Online Ltd. (NASDAQ:GLBE) fell by 17.77 percent on Wednesday to finish at $50.90 apiece as investor sentiment was dampened by dismal outlook guidance for 2025.

In its earnings release, Global-E Online Ltd. (NASDAQ:GLBE) anticipates revenue growth to grow at a slower pace due to expected impacts from tariffs coupled with a shift towards multi-local strategies by merchants.

In the fourth quarter of 2024, Global-E Online Ltd. (NASDAQ:GLBE) swung to a net income of $1.5 million in the fourth quarter of the year, reversing a net loss of $22.1 million in the same period a year earlier, as revenues jumped by 41.8 percent to $262.9 million from $185.4 million.

For the full year, net loss narrowed by 43.5 percent to $75.5 million from $133.8 million in 2023, as revenues increased by 32 percent to $752 million from $569 million year-on-year.

Overall GLBE ranks 2nd on our list of the stocks that plummeted on Wednesday. While we acknowledge the potential of GLBE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GLBE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.