Global-e Online: A High-Quality Proxy Play For Shopify

Summary

  • In Q4 2021, Global-e's revenue hit a new record, and its gross margin profile continued to improve.
  • As you may know, Global-e has been experiencing a revenue growth deceleration in recent quarters, which has probably prompted the stock to decline rapidly (amid a growth stock sell-off).
  • In today's note, we shall discuss Global-e's latest quarterly report and outlook for 2022.
  • According to the management team, the Shopify & Global-e partnership is going well, but Bolt's management believed they were making progress with Shopify too (until Shopify built a similar product in-house).
  • Global-e is a solid business, but its dependence on Shopify for future growth makes me nervous. Shopify holds all the leverage, and since it is now trading below fair value, I just want to accumulate Shopify's stock.
  • Looking for a helping hand in the market? Members of Beating the Market get exclusive ideas and guidance to navigate any climate. Learn More »
An Entrepreneur"s Holiday Party At Shopify NYC With Martha Stewart

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Introduction

In October 2021, we published a deep-dive research note on a rapidly growing, nearly profitable, cross-border e-commerce empowerment platform - Global-e Online (NASDAQ:GLBE). At the time, we liked the business quite a bit, but it never made it to our

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This article was written by

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I am Ahan Vashi, a seasoned investor with professional background in equity research, private equity, and software engineering. I currently serve as the Chief Financial Engineer at The Quantamental Investor, a community pursuing financial freedom through bold, active investing with proactive risk management.

TQI was established in July 2022 with a singular mission to make investing simple, fun, and profitable for all investors. In alignment with this mission, we publish premium equity research reports on Seeking Alpha - research library - performance tracker. However, there's a lot more on offer within our investing group - features include highly-concentrated, risk-optimized model portfolios that meet investor needs across different stages of the investor lifecycle, access to proprietary software tools, and group chats. Learn more

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of SHOP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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