Globant (GLOB) Slid Despite Satisfactory Results

Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. US large-cap equity fell in the quarter following the uncertainty surrounding US tariffs. In the first quarter of 2025, the fund underperformed the Russell 1000 benchmark. Negative stock selection and lack of energy exposure led to the underperformance of the fund in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Impax US Sustainable Economy 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 -24.82%, and its shares lost 37.05% of their value over the last 52 weeks. On June 4, 2025, Globant S.A. (NYSE:GLOB) stock closed at $97.95 per share with a market capitalization of $4.31 billion.

Impax US Sustainable Economy Fund stated the following regarding Globant S.A. (NYSE:GLOB) in its Q1 2025 investor letter:

“Globant S.A. (NYSE:GLOB) (Information Technology) is a software solutions provider helping to enhance productivity and drive increasing digital infrastructure in the transition to a more sustainable economy. The stock was down despite delivering satisfactory results, due to broad demand across multiple industry verticals and significant revenue growth in new markets. However, political volatility and macroeconomic pressures in Latin America are expected to affect demand, resulting in slightly lower revenue projections for the upcoming fiscal year.”

Why Is Globant SA (GLOB) Plunging In 2025?

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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 8.6% year-over-year growth in constant currency. 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 Polen U.S. Small Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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