(Bloomberg) – Software company Globalt SA set a record intraday decline after blaming the disappointing first-quarter results on a ripple of U.S. tariffs.
Globant shares fell 33.7% to $88.03 on Friday, the company’s worst decline since its listing in 2014, and then cut some of that loss.
Globant stock has fallen more than 53% on a total return basis so far this year, which keeps it on top of information technology services companies in the Russell 1000 index, according to data compiled by Bloomberg. But, over the past decade, it has been one of the best performers in the industry.
Globalt on Thursday lowered its revenue guide to a 2% growth rate of at least 9.1% in 2025. Its first-quarter revenue and adjusted earnings per share also lost analyst expectations.
CEO Martin Migoya blamed the weak results on the rise in uncertainty caused by President Donald Trump’s tariffs, which increased the likelihood of a U.S. recession this year. However, Globalt’s investment in AI and overall fundamentals has positioned it as greater growth, he said.
“The uncertainty of trade tariffs has affected most of our customers,” Migoya said on Thursday’s earnings call. “We have observed slower pipeline conversions in the U.S., with some countries in Latin America growing at a lower rate than expected.”
Globant’s tough spots are after a decade of growth in business around the world. The company’s stock established in Argentina has returned 478% of its investors in the past 10 years. According to company filings, its employee count has jumped to more than 31,000 last year in that time.
James Schneider and Piper Sandler & Co, analysts at Goldman Sachs Group Inc. Arvind Ramnani downgraded the stock from the buy rating to neutral after the result. However, about two-thirds of the 23 analysts covering the stock still recommend adding stocks. Ramnani said in a note that despite Globant’s long-term position, it’s difficult for the company to take steps to drive meaningful upside potential to reach a broader demand trend.
– With the assistance of Shin Pei, Daniel Cancel and Kevin Simauchi.
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