Piper Sandler analyst Brent Bracelin has revised his outlook on Global-e Online (GLBE, Financial), reducing the firm's price target from $62 to $42, although maintaining an Overweight rating on the stock. This adjustment comes as the cloud applications and analytics sector faces mounting challenges, including tariffs and complications in adopting artificial intelligence, impacting growth prospects.
Bracelin notes that stocks within the application software sector have been hit hard due to diminishing investor confidence, linked to a slowdown in industry growth for the fourth consecutive year and difficulties surrounding AI adoption. He suggests that these factors may indicate a waning of enthusiasm for AI.
He further highlights that the valuation multiples in the sector have fallen to their lowest levels in seven years, although the direct impact of tariffs on software models remains limited. This reassessment underscores the current pressures facing the sector as it navigates the evolving landscape.
