This one has been hard for me. I picked it up literally in the first minute of its IPO in May 2021. It went straight up for a long time. I panic-sold it in early 2022 when the downturn started to hit e-commerce, but still at a fair profit, since it had run up so much.
It got pummeled like everything else in 2022 and I picked it up again last fall for just over its IPO price. And it grew and grew again. By this July, it was up over 60% for me and I began trimming it to fund other things.
I got worried when the war broke out, since it’s an Israeli company, and I wasn’t sure if it would affect them. I trimmed more.
Their biggest story has always been tied to SHOP, and when Shopify had great earnings earlier this month, I had high hopes that the partnership would have paid off for GLBE, too. It was up over 50% for me yesterday, so I don’t think I was the only one who thought so.
But the fullness of that partnership always seems to be in the future, and when it took a dive this morning, I got out while I could still have gains.
The biggest unknown for me here has been management. They are a black box. No Glassdoor ratings or reviews to go by. No videos I could find. They communicate virtually nothing in-between earnings reports.
30% of their revenue comes from European transactions, and two wars now threaten the region. They said this morning that they were starting to see the Shopify Markets Pro partnership take hold. Next quarter should be good with the holidays, but they guided down.
I can’t complain. It’s one of the few companies that has reliably made me money. They offer an invaluable service. The Shopify partnership should pay off. But Europe appears to be more vulnerable to a recession, I don’t find the new Wix partnership all that compelling, and I have no way to evaluate management. I’m comfortable with my exit, but won’t rule out getting back into it, should it get beaten back down to its IPO again.
JabbokRiver