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Is GLBE Stock a Solid Long Term Investment?

Stock Market

The very idea of buying stock that can be held onto for a year or maybe even five years can be a daunting prospect, to say the least. The truth of the matter is that it's not always so easy to figure out exactly which stocks you should buy and which ones you shouldn't. That's true when you're talking about something that you want to hold onto for a very short amount of time. When the subject starts to center around something that you plan on holding onto for quite some time, things can get extremely complicated very quickly. It doesn't help that there are all kinds of risks involved in the stock market. If you are going to be involved in it, you're going to have to accept a certain amount of risk and that can be something that is absolutely terrifying. When you're talking about companies like Global-E, traded publicly as GLBE, it can often be exceedingly difficult to know what to do. There are a lot of reasons why you might be confused when it comes to the idea of purchasing this stock at all, much less as a long-term investment. Below are just a few of those reasons.

Reasons You Might Be Apprehensive

As previously mentioned, there are a number of reasons that you might be apprehensive when it comes to the very idea of purchasing this particular stock. For starters, it's a tech stock and if you know even the slightest thing about the stock market, you know how volatile these types of stocks can often be. It's also worth noting that when it does come to this particular stock, it's definitely lived up to its reputation as a tech stock, being just about as volatile as can be. If you go back and look at the way this particular stock has performed over the course of the last year, you're probably going to be even more alarmed than you were. Is there any merit to these concerns? Should you be at all concerned or should you go ahead and purchase this stock as a long-term investment? That is a question that you have to answer for yourself if you want to figure out whether this particular stock could be helpful in your portfolio or cause you even more anxiety. Fortunately, there are some things you can look at that will help you make your decision.

Potential Benefits of Buying This Stock

Despite the risks involved, there are several potential benefits associated with purchasing this particular stock, not the least of which includes the fact that the company currently has what many consider to be a monopoly on a particular niche that is much needed, all while being underserved. The company deals with making it easier for small businesses to sell their goods on a global basis. In short, they deal with the language barriers and the issues with currency exchange rates on your behalf as opposed to forcing you to deal with it all yourself. If you are a small business and you're trying to sell something in a number of different countries, this can be a huge benefit because trying to do it yourself can be a lot more challenging (not to mention nerve-wracking) than investing in anything on the stock market. The issue is that trying to navigate these waters typically involves a lot more time and money than most small business owners have. As a result, they end up giving up before they really even get started. Using this company can change all of that. That in turn means that your bottom line automatically grows as you're able to get your products out to more people. That's one reason why so many people feel like this particular stock is going to continue to grow well into the future, despite the fact that they haven't exactly had the best start on the stock market.

Current Status

Another thing that this particular company has going for it is the fact that there really isn't anyone else working in this particular field at their level. In other words, they basically don't have any competition at this time and they have more or less cornered the market in their chosen field. That means that their chances for long-term success are a lot higher because they essentially don't have any competition. That can go a long way toward making them a solid long-term investment option because there isn't anybody that's waiting in line to take over their spot. It's also worth noting that if you were to buy the stock today, you would spend just over $61 for every share you purchase. That's definitely not cheap. However, there is every chance that the stock could become worth even more in the relatively near future. If you plan on holding on to it for the next 12 months, it could mean that you get a fairly decent payday out of the deal. Even if you need to hold on to it for longer than that, it could still be a big payoff. In fact, some stock market experts believe that your biggest payoff could come if you choose to hold on to the stock for three or maybe even five years. That fact in and of itself is enough to scare some people off. Maybe you just don't want to have a stock that you have to hold onto for that long and if that's the case, that's understandable. However, you have to remember that when it comes to long-term investment options, some of them are more long-term than others. If you only consider the options that you can make a solid profit on in 12 months, you are limiting yourself by excluding everything else that could potentially get you a much bigger payday, provided you're willing to hold on to it long enough in order to see it through.

Tumbling Stock or Primed for a Rebound?

In the course of the last year, this particular stock has jumped by more than 110% in value. More recently, it has been down, by a fairly significant amount. In fact, it's currently down by more than 37%. Think about this and let it sink in for a moment. If the stock is down by that much and it is still selling for more than $61 a share, you can imagine how much it was selling for at its peak. While not every stock market expert agrees that it will eventually return to that level or even exceed it, there are plenty of individuals that feel like it will do exactly that. If you have the means to invest in a significant number of shares at today's prices, that could potentially generate you a bigger payday than you're probably accustomed to seeing with a single stock. In fact, some experts even believe that the stock will eventually be worth well over $170 per share. When you think of it in those terms, it would only make sense to buy the stock now because you could theoretically make three times the amount of money you've invested when you decide to sell. The issue is that there are no guarantees in the stock market, just like there are no guarantees in much of anything else in life. It's a risk and you have to be willing to take that risk knowing full well that when you do, it might not go the way you had hoped.

An Unclear Picture

One of the things that has a lot of investors worried is the fact that this particular stock doesn't offer a very clear picture when it comes to using it as a long-term investment. A lot of experts believe that it will increase in value by a significant amount. Others don't see it going that way at all. If you push all of those analysts aside and look at nothing but the numbers, you might be surprised to realize that things become even more unclear. In the last 30 days, the stock has gone up, but not by much. In fact, it's gone up by only 1.4%. That's not exactly enough to get your attention. To make things even more confusing, it's actually taken a pretty hard hit over the course of the last week. In fact, it's been down by 0.4% over the course of the last seven days. The question is, is it going to reverse its course and start gaining ground again or is it going to keep sliding? That's the thing that makes it so difficult to determine with any level of accuracy whether or not you should purchase this as a long-term investment. Granted, it's the only company of its type, at least at this level. No one would argue the fact that the company provides a much-needed service. That said, there is a lot of disagreement about the way this particular company is going about doing things, especially where its finances are concerned. As it turns out, the fact that it grew so quickly is the thing that is holding most people back.

Too Much, Too Fast

The biggest issue here is that like a lot of other stocks that experienced rapid growth, people are concerned that it's not possible for this company to keep up with that level of success. Remember, over the course of the last year the stock has increased in value by more than 113%. That's a significant number. While it might seem like that's great news, a lot of people start looking deeper in order to see how the company is operating. That's when people start to get concerned that they won't be able to maintain this level of growth. In fact, stocks that have this type of growth usually end up falling flat on their faces before it's all said and done. Like virtually anything else, you can typically have slow and steady growth or you can have something that shoots straight into the stratosphere, but then crashes and burns. It's worth noting that more often than not, the things that grow too rapidly are not capable of sustaining that level of growth or even maintaining an even keel. It's because it's usually too much growth that happens too quickly and it all ends up catching up with him in the end.

What Should You Do?

If you're in the market for a long-term investment and you're considering this particular stock, you're probably wondering what you should do at this point. Should you go ahead and invest or should you stay as far away from it as possible and find something that isn't quite as risky? If you're really counting on your long-term investments to grow your portfolio and you don't have a lot of discretionary income to work with, you’d probably be better off walking away from this stock. As a matter of fact, anyone with limited discretionary income could probably say that it's better to walk away from it based on the price of shares alone. On the other hand, if you're willing to hold on to it for a significant amount of time and you have more than enough income that you can comfortably risk, there is the potential for a very large payday at some point in the future. Every investor is different. As such, the long-term investments that work for one person may not work well for another. In order to decide what you should do, you have to take all of these factors into consideration with regard to your personal situation. When you consider that fact and you look at all of the information that has been provided, you should have a clear idea of which direction you want to go. Perhaps the most important thing you should do is follow your gut instinct. Nine times out of 10, that will tell you whether you're on the right track or not.

Allen Lee

Written by Allen Lee

Allen Lee is a Toronto-based freelance writer who studied business in school but has since turned to other pursuits. He spends more time than is perhaps wise with his eyes fixed on a screen either reading history books, keeping up with international news, or playing the latest releases on the Steam platform, which serve as the subject matter for much of his writing output. Currently, Lee is practicing the smidgen of Chinese that he picked up while visiting the Chinese mainland in hopes of someday being able to read certain historical texts in their original language.

Read more posts by Allen Lee

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