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Well before market open on Wednesday, an analyst tracking Globant (NYSE:GLOB) stock became notably less bullish on its future. He expressed this with a recommendation downgrade, and investors clearly took this to heart. Many sold out of the digital transformation specialist to leave it with a more than 5% decline at the close of the trading day.
The man behind the move was Guggenheim's Jonathan Lee, who changed his rating on Globant to neutral from buy. He also removed his $50 price target and hasn't yet replaced it.
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That change came just over one week before the company's third-quarter earnings report, scheduled for Thursday, Nov. 19. According to reports, it's due to what Lee considers Globant's fading upside potential. He cited potential weak points, such as softness in the company's Middle East business and a possible reduction in business from a large, unnamed client in the video game sector.
Not all of his points were negative, however. Lee waxed bullish on the company's embrace of artificial intelligence (AI), writing that its relatively new AI pods subscription service is a suitable vehicle for Globant's future.
Any tech service business has a fundamental vulnerability -- the attractiveness of, and demand for, its services. To its credit, Globant has been nimble enough to keep growing; however, I think it still has much to prove with its AI pods, which were initially launched in mid-2025. I feel investors want to see more robust growth than the company's been posting, too. So, to me, Lee's new neutral rating is the right one for this wait-and-see stock.
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. If you'd invested $5,000 then, you'd be sitting on $2,195,396 today.*
Now, for the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. It's a key player in the $1.8 trillion space race, and with the stock recently sitting 20% off its highs, the window to get in early is closing fast.
*Stock Advisor returns as of November 11, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Globant. The Motley Fool has a disclosure policy.
Why Globant Stock Wilted by 5% on Wednesday was originally published by The Motley Fool
