Globant has been quietly clawing its way back from the wreckage of 2025. The stock is sitting around $68.95 today, barely red on the session (about -0.43%), and that’s the point: after the volatility and the drawdown, the tape has calmed down and started acting like a name that wants to build a base.
My thesis is simple: GLOB is setting up for a tradable continuation move rather than a heroic multi-quarter rerating. The technical posture has improved (price is above key moving averages, MACD is positive), short interest is still meaningful (fuel if sentiment improves), and the stock remains dramatically below its prior highs. The market doesn’t need to fall back in love with Globant for this to work. It just needs to stop assuming the worst.
That said, I’m not going to pretend this is a “buy and forget” story at ~30.6x P/E. This is a trade idea with defined risk. The backdrop is still one where investors punish IT services firms when growth wobbles, and there’s evidence the market has been skeptical about the trajectory.
Trade framing for 2026: This is about capturing a move from stabilization to re-acceleration expectations, not calling a permanent bottom with blind faith.
What Globant does, and why the market should care
Globant is an IT services company focused on building and running digital products for enterprises. The core work spans application development, testing, infrastructure management, and application maintenance. In plain English: they’re the team that helps big companies modernize what they sell and how they operate, then keeps those systems humming.
The reason the market cares is that this is a sentiment-driven business model. When enterprise budgets open up, digital transformation and AI adoption become “must-do” initiatives and services firms get paid. When CIOs tighten spend, the same projects get pushed out, and revenue growth rates can quickly disappoint. The stock tends to trade less like a steady utility and more like a barometer for enterprise confidence.
Globant employs 31,280 people, which matters because scale helps it win large programs, but also creates operating leverage in both directions. The company’s positioning around AI-related delivery has been a recurring theme in commentary, including mentions of AI Agents integrated into the software development lifecycle. Whether that translates into sustained growth is the debate - but it is a debate the market will keep repricing.
Where the stock is now: price action, levels, and positioning
Today’s snapshot:
- Current price: $68.95
- Day range: $68.84 to $70.61
- 52-week range: $54.36 (low on 09/15/2025) to $228.98 (high on 02/13/2025)
- Market cap: ~$3.04B
- P/E: 30.58
- P/B: 1.40
The brutal truth in that 52-week range is that GLOB is still a long way from where it traded a year ago, even after bouncing off the lows. That’s not automatically bullish, but it does tell you the bar for “less bad” has been set low. If results and guidance simply stop deteriorating, the stock can move without needing perfection.
Technically, the setup is constructive:
- SMA(10): $67.87
- SMA(20): $67.55
- SMA(50): $66.51
- EMA(9): $68.30
- EMA(21): $67.75
- RSI: 54.04 (not stretched)
- MACD: bullish momentum (line 0.58 vs signal 0.45)
This matters because it’s the opposite of a falling knife. Price is above the 10/20/50-day averages, RSI is mid-range (room to run), and MACD is positive. That’s the kind of tape you can actually trade with a stop that makes sense.
Positioning is also worth noting. As of 01/15/2026, short interest sits at 5,930,467 shares, with ~5.99 days to cover based on average daily volume. That’s not “meme stock” fuel, but it’s enough that a couple of strong sessions or a confidence-restoring update can force some incremental buying.
Fundamental temperature check: why 2026 is different from early 2025
We don’t have a full income statement in this view, but we do have important context from recent coverage and what the market has been reacting to.
On 08/15/2025, sentiment around Globant tilted negative after a report described modest Q2 growth of 4.5% revenue increase and skepticism about the company’s growth trajectory. That’s the kind of number that compresses multiples in IT services because it signals budget friction and/or competitive pressure.
Earlier, on 02/21/2025, there was a more upbeat tone: Q4 results were described as in line, with a marginal EPS beat and a slightly soft revenue print. Management’s 2025 outlook in that coverage projected 9.1% to 12% revenue growth, with mention of an improved adjusted profit margin year-over-year, while flagging FX fluctuations and competition as ongoing issues.
Put those two together and you get the narrative arc that likely drove the stock: optimism about re-acceleration, followed by evidence of slower realized growth and investor doubt. The 2026 opportunity is that expectations have already been reset. The stock doesn’t trade like a company the market thinks is compounding at 20% anymore.
Valuation framing: not “cheap,” but potentially mispriced for a trade
At around $3.04B in market cap and a 30.6x P/E, GLOB is not priced like a distressed asset. The market is still assigning a premium multiple relative to what you’d pay for a no-growth outsourcer. That premium only makes sense if investors believe Globant can defend differentiated delivery (especially around AI-driven software development) and keep margins respectable.
But here’s the nuance: valuation doesn’t have to be “low” for a stock to rally. It just has to be less wrong than the market expects. With the stock down massively from the $228.98 high, the real question is whether the market has overshot on pessimism about the growth profile. If the answer is even partially “yes,” a mid-term rebound toward obvious resistance levels is reasonable.
Catalysts I’m watching (what could push this higher)
- 1) Any evidence of re-acceleration in services demand: the market punished the stock for ~mid-single-digit growth. Even a modest improvement in forward commentary can change the trade.
- 2) AI delivery wins translating into confidence: announcements around AI Agents and AI-enabled platforms matter less as product news and more as proof that Globant can monetize AI adoption in real enterprise budgets.
- 3) Short-covering on a clean breakout: with ~6 days to cover, momentum can feed on itself if the stock clears nearby resistance.
- 4) Multiple stabilization: if investors stop demanding a lower and lower valuation, price can drift higher even without explosive fundamentals.
The trade plan (actionable)
I like this as a mid term (45 trading days) trade. That window is long enough for a trend to develop and for positioning to matter, but short enough that you’re not marrying the stock through a full enterprise spending cycle.
| Item | Level | Why it matters |
|---|---|---|
| Direction | Long | Trend has improved (above key moving averages, bullish MACD) |
| Entry | $68.95 | Current price area, near the cluster of short-term averages |
| Stop loss | $64.90 | Below the 50-day SMA (~$66.51) with room for noise; a break suggests the base failed |
| Target | $79.80 | Represents a meaningful rebound without assuming a full rerating back toward old highs |
How I’d manage it: if GLOB pushes toward the low $70s and then starts stalling, I’d watch volume and momentum closely. A slow grind higher is fine. A sharp rejection back below the moving average cluster is not. Conversely, if the stock clears $70.61 (today’s high) and holds above it for a couple of sessions, that’s usually when shorts start getting less comfortable.
Key points supporting the long
- GLOB is trading above its 10/20/50-day moving averages (SMA 10: $67.87, SMA 20: $67.55, SMA 50: $66.51).
- MACD is in bullish momentum and RSI at 54 suggests the stock is not overbought.
- Short interest remains elevated at ~5.93M shares with ~5.99 days to cover, which can amplify upside if sentiment improves.
- The stock is still far below its prior peak ($228.98), meaning “better-than-feared” can matter more than “amazing.”
Risks and counterarguments (what can break the trade)
This setup is tradable, but it’s not bulletproof. The risks are real:
- 1) Growth stays sluggish: the market already reacted poorly to reported modest growth (for example, 4.5% revenue growth mentioned in Q2 coverage). If the next updates confirm a low-growth reality, the multiple can compress.
- 2) Valuation vulnerability: a 30.6x P/E leaves room for disappointment. If investors decide this should be valued like a slower IT services provider, downside can happen fast.
- 3) Competitive pressure and pricing: even positive demand can be offset by competitors undercutting on price or winning deals, which can cap margins and limit upside.
- 4) FX and macro sensitivity: Globant has been flagged as exposed to foreign exchange fluctuations. In risk-off periods, services names can trade down regardless of company-specific execution.
- 5) Technical failure: if the stock loses the $66-$67 area (where the 20/50-day averages sit) and doesn’t reclaim it quickly, the “base-building” thesis is wrong and you can get dragged back toward prior lows.
Counterargument to my thesis: the cleanest bear case is that this is simply a dead-cat bounce in a structurally slowing services franchise. If enterprise customers are shifting spend to internal teams, consolidating vendors, or treating AI as a cost-cutting lever rather than a services accelerator, Globant could face a longer period of muted growth. In that world, rallies are for selling, not for building positions.
Conclusion: a tactical long, with respect for the tape
I’m bullish on GLOB as a trade into the next several weeks because the stock is acting healthier (trend and momentum), positioning provides some optionality, and expectations appear more grounded than they were near the prior highs. The plan is straightforward: long at $68.95, stop at $64.90, target at $79.80, with a mid term (45 trading days) horizon.
What would change my mind? Two things. First, if price breaks down and holds below the moving-average cluster (especially if it can’t reclaim the ~$66.50 area), that’s the market saying the base isn’t real. Second, if the narrative continues to deteriorate around growth and competitiveness, the multiple won’t be your friend, and I’d rather step aside than rationalize it.