Core Insights - PDD Holdings Inc. is currently viewed as a more attractive investment compared to Global-e Online Ltd. based on valuation metrics and earnings estimate revisions [1][3][6] Valuation Metrics - PDD has a forward P/E ratio of 13.42, significantly lower than GLBE's forward P/E of 113.64, indicating that PDD is potentially undervalued [5] - The PEG ratio for PDD is 1.39, while GLBE's PEG ratio stands at 1.92, suggesting that PDD offers better value relative to its expected earnings growth [5] - PDD's P/B ratio is 3.56 compared to GLBE's P/B of 6.7, further supporting the notion that PDD is undervalued [6] Investment Ratings - PDD holds a Zacks Rank of 1 (Strong Buy), while GLBE has a Zacks Rank of 2 (Buy), indicating a stronger analyst outlook for PDD [3][6] - The Value grade for PDD is B, contrasting with GLBE's Value grade of F, highlighting PDD's superior valuation metrics [6]

Core Viewpoint - Global-e Online Ltd. (GLBE) has seen a 15.8% increase in share price over the past four weeks, closing at $35.68, with a potential upside of 32.7% based on Wall Street analysts' mean price target of $47.33 [1] Price Targets and Analyst Consensus - The average price target for GLBE is based on 12 short-term estimates, ranging from a low of $32.00 to a high of $64.00, with a standard deviation of $7.75, indicating variability in analyst predictions [2] - The lowest estimate suggests a decline of 10.3% from the current price, while the highest indicates a potential upside of 79.4% [2] - Analysts' price targets should not be the sole basis for investment decisions due to concerns about their accuracy and potential biases [3][7] Earnings Estimates and Analyst Agreement - Strong agreement among analysts regarding GLBE's ability to report better earnings than previously predicted supports the view of potential upside [4] - The Zacks Consensus Estimate for the current year has increased by 2.6% over the past month, with no negative revisions [12] - GLBE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Conclusion on Price Movement - While consensus price targets may not reliably indicate the extent of potential gains for GLBE, the direction implied by these targets appears to be a useful guide for investors [14]

Summary of Global-E Online FY Conference Call Company Overview - **Company**: Global-E Online Ltd (NasdaqGS:GLBE) - **Industry**: Cross-border e-commerce Key Points Policy and Tariff Impact - The enforcement of tariffs has not significantly impacted Global-E's business, with the U.S. market representing only about 12% of the company's Gross Merchandise Value (GMV) [2][3][4] - Luxury and celebrity brands have shown resilience to price increases due to tariffs, as consumers are less sensitive to price changes [4][5] - Brands are adjusting prices globally rather than specifically for the U.S. market to avoid social media backlash over price differentiation [4][5] - The removal of the de minimis exemption for products from China and Hong Kong affected about 3% of Global-E's market, but overall impact was minimal [13][18][21] - The company does not anticipate major disruptions in trade patterns despite tariff changes, as the U.S. tariffs are comparable to those imposed by other countries [22][23] Growth Drivers - The introduction of the 3B2C model is seen as a significant growth driver, allowing brands to reduce duty burdens by setting up a local entity in the U.S. [27][28] - The onboarding process for brands to switch to the 3B2C model is quick, taking only days to weeks [31][36] - There is growing interest from both existing and new brands in the 3B2C model due to the desire to offload duty management [36][41] - The company has a positive outlook for the second half of the year, with strong trading patterns and successful onboarding of multiple brands [43][44] AI and Technology - Global-E views AI as an opportunity rather than a threat, leveraging AI to enhance operational efficiencies and customer service [48][52] - The company has automated over 50% of its customer service operations using AI and is working on extending AI support to merchants [51][52] - Proprietary data and a service layer are critical to Global-E's operations, making it difficult for AI to replicate their business model [49][50] Shopify Partnership - The new multi-year partnership with Shopify focuses on a white-label solution for small-sized merchants, which is expected to unlock significant growth potential [55][56] - The partnership has evolved from an exclusive agreement to a more open model, which Global-E believes will not negatively impact its market position [61][62] - The company anticipates maintaining high win rates on Shopify, similar to other platforms, despite the changes in partnership dynamics [62] Other Considerations - The company has not provided specific guidance for 2026 but maintains a positive multi-year outlook based on current trends and brand onboarding success [43][44] - The management expresses confidence in their ability to navigate the evolving market landscape and capitalize on growth opportunities [44][62]

Core Viewpoint - Global-e Online Ltd. has announced its first-ever stock repurchase program, authorizing up to $200 million for the buyback of its ordinary shares, reflecting confidence in cash flow generation and commitment to shareholder value [1][2]. Group 1: Stock Repurchase Program - The board of directors has authorized a stock repurchase program amounting to $200 million [1]. - The program aims to enhance shareholder value and demonstrates the company's strong cash flow generation capabilities [2]. - Repurchases may occur through various methods, including open market purchases and privately negotiated transactions, in compliance with U.S. securities laws [2]. Group 2: Financial Health and Strategy - The company has a healthy balance sheet that allows for continued investment in strategic initiatives while returning capital to shareholders [2]. - Repurchases will be funded through cash on hand and future cash generated from operations [2]. - The timing, number, and value of repurchased securities will depend on market conditions, financial results, and liquidity [2]. Group 3: Company Overview - Global-e is a leading platform for global direct-to-consumer e-commerce, partnering with over 1,400 brands and retailers across North America, EMEA, and APAC [5]. - The company facilitates international sales by providing a localized shopping experience for online shoppers in over 200 destinations [5]. - Global-e's solutions combine localization capabilities, business intelligence models, and international logistics expertise [5].

Core Insights - Global-e will participate in the Piper Sandler Growth Frontiers Conference on September 10, 2025, with CEO Amir Schlachet and VP of Investor Relations Alan Katz attending [1] Company Overview - Global-e is the leading platform for global Direct-To-Consumer e-commerce, partnering with over 1,400 brands and retailers across North America, EMEA, and APAC [2] - The company simplifies international selling for merchants, enhancing the conversion of international traffic into sales by providing a localized shopping experience in over 200 destinations [2] - Global-e's solutions include localization capabilities, business intelligence models, streamlined logistics, and extensive e-commerce experience, facilitating seamless online shopping for international customers [2]

Core Viewpoint - The analysis compares PDD Holdings Inc. and Global-e Online Ltd. to determine which stock represents a better undervalued investment opportunity for investors interested in Internet - Commerce stocks [1]. Valuation Metrics - PDD Holdings Inc. has a forward P/E ratio of 12.50, significantly lower than Global-e Online Ltd.'s forward P/E of 105.89, indicating that PDD may be undervalued [5]. - The PEG ratio for PDD is 1.29, while Global-e Online Ltd. has a PEG ratio of 1.78, suggesting that PDD's expected earnings growth is more favorable relative to its valuation [5]. - PDD's P/B ratio stands at 3.31, compared to Global-e Online Ltd.'s P/B of 6.25, further supporting the notion that PDD is a more attractive value option [6]. Investment Ratings - PDD Holdings Inc. currently holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Global-e Online Ltd. has a Zacks Rank of 2 (Buy) [3]. - Based on the valuation metrics and earnings outlook, PDD is rated with a Value grade of B, whereas Global-e Online Ltd. has a Value grade of F, reinforcing PDD's position as the superior value option [6].

Core Insights - True Classic has renewed its partnership with Global-e, reflecting strong international e-commerce growth and success in over 200 markets [1][2][3] Company Overview - True Classic, founded in 2019, has rapidly grown to become one of the fastest-growing apparel brands in the U.S., serving over 5 million customers globally [3][8] - The brand's international sales now account for over 25% of its total e-commerce revenue, with key markets including Canada, UAE, UK, Australia, Switzerland, Norway, and Sweden [2][3] Partnership Impact - Global-e has played a crucial role in True Classic's global expansion by providing localized online shopping experiences, including local currencies and preferred payment methods [4] - The partnership has enabled True Classic to optimize inventory and reduce shipping costs through a multi-node logistics network, enhancing customer experience and profitability [4] Strategic Growth Initiatives - True Classic is experiencing accelerated growth due to a recent strategic investment from 1686 Partners, which is facilitating expansion in both retail and wholesale channels [5] - The brand is increasing its U.S. presence with new retail stores and gaining traction in wholesale placements with major retailers like Sam's Club, Target, Nordstrom, and Costco [5] Product Expansion - True Classic is expanding its product categories to include women and kids' apparel, aiming to meet the needs of a broader customer base while maintaining its commitment to premium quality and exceptional value [9]

Core Viewpoint - Global-e Online has demonstrated strong revenue growth and profitability, yet its stock has declined due to market concerns over new tariffs and the end of the U.S. de minimis customs exemption [1][2]. Group 1: Financial Performance - Global-e Online reported a revenue growth of 28%, surpassing analysts' expectations, and achieved profitability for the second time in three quarters [1]. - The company has raised its full-year guidance to a projected 31% sales growth [1]. - Over the past three quarters, revenue growth rates were 42%, 30%, and 28%, indicating consistent performance despite stock sell-offs [3]. Group 2: Market Concerns - The stock has dropped 7% due to worries about the impact of new tariffs and the expiration of the U.S. de minimis customs exemption on operations [2][4]. - The market's negative outlook is attributed to the complexities introduced in cross-border trade by these regulatory changes [4]. Group 3: Strategic Initiatives - Global-e has introduced a new 3B2C solution aimed at helping global brands mitigate costs associated with tariffs, showcasing the company's adaptability in uncertain environments [6]. - The company’s ability to create solutions for cross-border trade challenges may provide long-term benefits despite short-term pressures from tariffs [6]. Group 4: Valuation - Currently, Global-e is trading at 35 times free cash flow, suggesting it is a strong business with a reasonable valuation [7].

Financial Data and Key Metrics Changes - The company reported a GMV of $1,450,000,000, representing a 34% year-over-year increase, and revenues of almost $215,000,000, up 28% year-over-year [10][23] - Adjusted gross profit for Q2 was just shy of $100,000,000, up 24% from last year, with adjusted EBITDA of $38,500,000, up 23% compared to the same quarter last year, resulting in a 17.9% margin [10][26] - The company achieved GAAP profitability with a net profit of $10,500,000 compared to a net loss of $22,400,000 in the same quarter of last year [10][27] Business Line Data and Key Metrics Changes - Service fee revenue for the quarter was $102,900,000, while fulfillment services revenue was $112,000,000 [23] - The service fee take rate increased compared to Q1 2025, while the fulfillment take rate decreased as expected due to seasonal higher average order value [24] Market Data and Key Metrics Changes - The company continues to see strong growth across many geographies and cohorts of merchants, with notable expansions in the U.S. market [12][78] - The U.S. business has outperformed, driven by strong growth from digitally native brands [78] Company Strategy and Development Direction - The company extended its partnership with DHL for an additional three years, enhancing service offerings for merchants [14] - The acquisition of ReturnGo aims to improve post-purchase solutions for merchants, integrating advanced technology for returns and exchanges [15][49] - The company is focused on enhancing its 3B2C offering to help brands offset costs due to rising tariffs [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite uncertainties around duty tariffs and trade dynamics [9][11] - The company anticipates continued strong trading patterns and does not expect significant impacts from upcoming changes to the U.S. de minimis exemption [11][36] Other Important Information - The company ended the quarter with $516,000,000 in cash and cash equivalents, with free cash flow of $63,500,000 [27] - For Q3 2025, the company expects GMV in the range of $1,455,000,000 to $1,495,000,000, representing a growth rate of 30% versus 2024 [28] Q&A Session Summary Question: Expectations around the de minimis exemption and its impact - Management indicated that they do not expect a significant impact from the removal of the de minimis exemption, noting resilient trading patterns [33][36] Question: Impact of the ReturnGo acquisition on revenue and OpEx - The acquisition is expected to have a slight positive impact on revenue and a minor negative impact on adjusted EBITDA in 2025, with expectations of neutral impact by 2026 [38] Question: Take rate dynamics for the 3B2C product - The take rate for the 3B2C solution is expected to be similar to regular B2C transactions, with minimal impact from clearance fees [45] Question: Growth in the U.S. business and its drivers - The U.S. business is outperforming due to strong growth from digitally native brands, contributing positively to overall performance [78] Question: Contribution from borderfree.com - The borderfree.com platform contributed over 4% of sales from merchants utilizing the service, in line with expectations [87] Question: Trends in NDR and same-store merchant GMV growth - Year-to-date figures are in line with historical averages, with expectations for new merchant contributions to be similar to last year [89]

Financial Data and Key Metrics Changes - The company reported a GMV of $1,450,000,000, representing a 34% year-over-year increase [9] - Revenue reached almost $215,000,000, up 28% year-over-year [9] - Adjusted gross profit for Q2 was just shy of $100,000,000, a 24% increase from last year [9] - Adjusted EBITDA was $38,500,000, up 23% compared to the same quarter last year, resulting in a 17.9% margin [9][26] - The company achieved GAAP profitability with a net profit of $10,500,000 compared to a net loss of $22,400,000 in the same quarter last year [9][27] - Cash and cash equivalents at the end of the quarter were $516,000,000, with free cash flow of $63,500,000 [27] Business Line Data and Key Metrics Changes - Service fee revenue for the quarter was $102,900,000, while fulfillment services revenue was $112,000,000 [23] - The service fee take rate increased compared to Q1 2025, while the fulfillment take rate decreased as expected [23] - Non-GAAP gross profit was $99,900,000, representing a gross margin of 46.5% [24] Market Data and Key Metrics Changes - The company continues to see strong growth across many geographies and cohorts of merchants, with a positive trend in trading patterns continuing into Q3 [10][11] - The U.S. market showed strong growth, outperforming other developed markets, driven by digitally native brands [78] Company Strategy and Development Direction - The company extended its partnership with DHL for an additional three years, enhancing service to merchants [14] - The acquisition of ReturnGo aims to improve post-purchase solutions for merchants [14][29] - The company is focused on enhancing its 3B2C offering to help brands offset costs due to rising tariffs [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite uncertainties around duty tariffs [7][10] - The company anticipates continued strong trading volumes and does not expect significant impacts from upcoming tariff changes [10][36] - The outlook for Q3 includes GMV expectations in the range of $1,455,000,000 to $1,495,000,000, representing a growth rate of 30% versus 2024 [28] Other Important Information - The company is on track for its first full year of GAAP profitability in 2025 [10][27] - The integration of ReturnGo's technology is expected to enhance the return experience for customers [15] Q&A Session Summary Question: Impact of de minimis exemption changes - Management indicated that they do not expect a significant impact from the removal of the de minimis exemption, citing resilient trading patterns [34][36] Question: Acquisition impact on revenue and OpEx - The acquisition of ReturnGo is expected to have a slight positive impact on revenue and a negative impact on adjusted EBITDA in 2025, with expectations of neutral impact by 2026 [39] Question: 3B2C product uptake and take rates - The 3B2C solution has seen growing interest, with take rates expected to remain stable as they are similar to regular B2C transactions [45][46] Question: U.S. business growth dynamics - The U.S. business is outperforming due to strong growth from digitally native brands, contributing to overall growth [78] Question: BorderFree contribution to revenue - The BorderFree platform contributed over 4% of sales from merchants utilizing the service, with expectations for further growth [87] Question: International market opportunities - The company sees significant potential in APAC, particularly in Korea and Taiwan, with plans for increased sales and account management resources in the region [109]