(Bloomberg)-Software company globant sa suffered a record a record after blaming its disappointing first-Quarter Results on the ripple effects of us tarifs.
Globant Shares Plunged as much as 33.7% on Friday to $ 88.03, The WORST DROP SINCE The Company Went Public in 2014, Before Paring Some of that Losses.
So far this year, globant’s stock is down more than 53% on a total return basis, which puts it last among information technology services in the russell 1000 index, cocording to do data Bloomberg. Over the past decade thought, it’s one of the best performs in the sector.
Globant Cut Its Revenue Guidance Thursday to 2% Growth for 2025 From at Least 9.1% Previous. Its first Quarter Revenue and Adjusted Earnings Per Share also Missed Analyst Expectations.
Chief Executive Officer Martin Migoya Blamed The Weak Results on Rising Uncerty Stemming from President Donald Trump’s tariffs, which have increased the problem of a us recesion this year. He said, however, that globant’s investments in artificial intelligence and overall fundamentals have positioned it for more growth ahead.
“Uncertainty from Trade Tariffs has impacted a good portion of our customers,” migoya said on an earnings call chursday. “We observed a Slower Pace of Pipeline Conversion in the US, and Growth in Some Countries in Latin America has been lower than expected.”
Globant’s Rough Patch Comes after a Decade of Surging Growth in Its Operations Around the World. Founded in Argentina, the company’s shares have returned 478% to investors over the past 10 years. Its Employee Headcount has Jumped Tenfold Over that period to more than 31,000 as of last year, according to company filings.
James Schneider, Annalyst at Goldman Sachs Group Inc., and Arvind Ramnani of Piper Sandler & Co. Downgraded the shares to neutral from a buy rating after the results. But about two-thirds of 23 analysts the stock still recommend adding shares. While Globant is Well Positioned for the Longer Term, it will be hard for the company to take steps to drive meaningful upside to broader demand trends, Ramnani said in a not.
-With assistance from shin pei, daniel cancel and kevin Simuchi.
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