Here’s Why Globant (GLOB) Traded Down in Q2

Fred Alger Management, an investment management company, released its “Alger Mid Cap Focus Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets regained their strength in the second quarter of 2025. Class A shares of the fund outperformed the Russell Midcap Growth Index during the quarter. The Industrials and Energy sectors contributed to the relative performance of the strategy in the quarter, while Information Technology and Consumer Discretionary sectors detracted.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Alger Mid Cap Focus 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 -1.55%, and its shares lost 54.28% of their value over the last 52 weeks. On July 23, 2025, Globant S.A. (NYSE:GLOB) stock closed at $90.10 per share, with a market capitalization of $3.969 billion.

Alger Mid Cap Focus Fund stated the following regarding Globant S.A. (NYSE:GLOB) in its second quarter 2025 investor letter:

“Globant S.A. (NYSE:GLOB) is a global technology services company that helps businesses transform digitally by creating software solutions, leveraging AI, and providing cloud-based services. Its customers primarily include large companies across North America, Latin America, and Europe. Shares detracted from performance during the quarter after the company reported weaker-than-expected fiscal first-quarter results, as revenue growth missed analyst estimates. The revenue shortfall was mainly due to clients delaying discretionary IT and digital transformation projects amid macroeconomic uncertainty, particularly within its North American segment. Management highlighted that the slowdown in non essential corporate spending—especially on projects unrelated to core operations or required digital upgrades—was the primary factor impacting new bookings and revenue growth.”

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 7% year-over-year growth. While we acknowledge the risk and potential of Globant S.A. (NYSE:GLOB) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Globant S.A. (NYSE:GLOB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Globant S.A. (NYSE:GLOB) and shared the list of cheap IT stocks hedge funds are buying. In addition, please check out our hedge fund investor letters Q2 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.