Global-e Online's (GLBE) share price drop following the release of its Q4 results mainly reflects investors' concerns around the near-term uncertainty over the potential impact of tariffs, UBS said in a note Friday.
The firm said the company issued a "solid" 2025 gross merchandise value outlook, but the implied take rate guidance below consensus and the 2024 level raised fears that the potential tariffs would have further impact on both GMV and take rate.
UBS said the company's fulfillment services segment, which faces pressure if merchants shift to local fulfillment, contributed about 32% of 2024 non-GAAP gross profit. US inbound revenue that may be impacted by US tariffs accounted for nearly 10% of the company's revenue mix in 2024 while US outbound contributed about 55% and is exposed to potential retaliatory tariffs from other countries, the note added.
Notwithstanding the periodic volatility typical in the company's cross-border trade, UBS said it expects Global-e to continue gaining traction in the global e-commerce market.
UBS trimmed its price target on the stock to $64 from $68, while maintaining a buy rating.
Global-e shares were down more than 2% in recent trading.
Price: 45.31, Change: -1.32, Percent Change: -2.83
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