Shopify Stock Sold Out? Instead, Invest in Global-e Shares  

You could have made roughly 3,000% more if you bought Shopify when it went public, one of Wall Street's most followed stocks. Much more may follow. Shopify has a $100 billion market cap, while newer companies may have more growth potential. If you missed Shopify's early gains, purchase Global-e Online (NASDAQ: GLBE) instead. 

worldwide-e provides e-commerce retailers with worldwide cross-border solutions. As a business-to-business corporation, Global-e's name is rarely visible to customers. If you order things from another nation and see checkouts with different currencies, fast customs information, and shipping alternatives, you may be using Global-e.

Global-e has several high-profile customers and adds new deals. It continues to cooperate with fashion firms in new markets through its longstanding relationship with LVMH. Jean-Paul Gaultier, Glossier, and EleVen by Venus Williams joined in Q4 2023. Though slowing in inflation, it still grows fast. Sales jumped 39% to $570 million and GMV rose 45% to $3.6 billion in 2023.

Global-e isn't GAAP-profitable, but it's improving. In 2023, non-GAAP gross profit rose 46% to $244.8 million and gross margin rose 1.9 percentage points to 42.9%. Adjusted EBITDA rose 90% to $92.7 million. Net loss fell to $134 million from $195 million

The report was good, but management expects a slowdown. Revenue could reach $142 million in the 2024 first quarter and $750 million for the year, up 20% and 31%, respectively. Still, that's impressive given the economy.

Global-e is closely tied to Shopify, thus investing in it gives investors some Shopify stock exposure. Shopify, which invested in Global-e, offers its platform to its millions of customers in various ways.

Management reports that Shopify Markets Pro, a white-label solution of Global-e, is doing well with customers adopting the platform on their websites. Shopify powers millions of small and growing businesses and a substantial portion of global e-commerce. Global-e has a significant growth possibility.

Shopify's investment contributes to Global-e's losses. Global-e will continue to amortize Shopify's stock warrants on its income statement until next year. Global-e may not become net profitable until then, putting investors at risk.

Global-e's fourth-quarter report may have disappointed investors due to guidance. After the report, Global-e stock fell 9% this year but rose 35% last year. Because its valuation was growing, exceeding a price-to-sales ratio of 14 last year, that correction may have been warranted. The ratio is still rich at 10. Given Global-e's performance and promise, it may be justified. Risk-tolerant investors may buy shares on the downturn.

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