Globant (GLOB) Fell Due to Below-Expected Guidance

Brown Brothers Harriman & Co., a global financial services firm, released its “The BBH Select Series – Mid Cap Fund” first quarter investor letter. A copy of the same can be downloaded here. The fund fell -6.0% in the first quarter on a total return basis, while the Russell Midcap Index decreased -3.4%. The fund generated an average annual total return of 3.1% since its inception on May 24, 2021, compared to the index’s 4.1% return. Given the increased policy uncertainty and market volatility, many of the firm’s management teams issued cautious 2025 guidance.  For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, The BBH Select Series – Mid Cap Fund highlighted stocks such as Globant S.A. (NYSE:GLOB). Globant S.A. (NYSE:GLOB) is a Luxembourg-based technology services company. The one-month return of Globant S.A. (NYSE:GLOB) was -7.88%, and its shares lost 48.57% of their value over the last 52 weeks. On June 24, 2025, Globant S.A. (NYSE:GLOB) stock closed at $91.11 per share, with a market capitalization of $4.014 billion.

The BBH Select Series – Mid Cap Fund stated the following regarding Globant S.A. (NYSE:GLOB) in its Q1 2025 investor letter:

“The Fund’s largest detractors to performance in the quarter were Globant S.A. (NYSE:GLOB) and BrukerCorp.(Bruker). Globant declined -45.1% during the quarter, ending with a weight of 2.5%. Globant is the second-largest pure-play digital software engineering vendor with a focus on front-end, custom-designed software engineering applications that are mission critical to its customers. Globant reported an overall in-line quarter but provided guidance that was below consensus. The primary drivers of the guidance shortfall were foreign exchange headwinds from a stronger U.S. dollar, weak macroeconomic conditions in Brazil and Mexico, and slower spending by its largest customer (Disney). Globant has been a beneficiary of increased spending by its customers on artificial intelligence (AI) applications, which represented approximately 15% of total revenues in 2024, but momentum in AI is tempered by a weakening demand outlook in Latin America (~20% of revenue) and more broadly.”

Globant S.A. (NYSE:GLOB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Globant S.A. (NYSE:GLOB) at the end of the first quarter, which was 25 in the previous quarter. Globant S.A. (NYSE:GLOB) reported solid results in Q1 2025, with revenues reaching $611 million, reflecting an 7% year-over-year growth. While we acknowledge the potential of Globant S.A. (NYSE:GLOB) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Globant S.A. (NYSE:GLOB) and shared the list of best mid cap growth stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of GLOB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.