Downward Revision Of Forecast Hit Globant S.A. (GLOB) in Q3

Core Insights - Harding Loevner's Global Equity Strategy reported a gross return of 2.62% and a net return of 2.52% for Q3 2025, underperforming the MSCI All Country World Index and MSCI World Index which returned 7.74% and 7.36% respectively [1] - Year-to-date, the strategy has risen 10.61% net, compared to 18.86% and 17.83% for the respective indexes [1] - The last six months have been characterized as one of the strongest momentum phases in over 70 years, with high-momentum stocks outperforming low-momentum stocks by 45 percentage points, largely driven by advancements in AI [1] Company Focus: Globant S.A. (NYSE:GLOB) - Globant S.A. has experienced a one-month return of 18.04%, but its shares have lost 68.75% of their value over the past 52 weeks, closing at $69.41 on December 3, 2025, with a market capitalization of $3.058 billion [2] - The company has faced significant growth slowdown, with recent results meeting consensus expectations but accompanied by downward revisions to management's forecasts [3] - Despite a strong pipeline with estimated contract values up 25% year-over-year, customer implementations have been postponed due to macroeconomic uncertainty [3] Hedge Fund Interest - Globant S.A. was held by 32 hedge fund portfolios at the end of Q3 2025, an increase from 26 in the previous quarter [5] - The company generated revenues of $617.1 million in Q3 2025, reflecting a year-over-year increase of 0.4% and a sequential increase of 0.5% [5] - While Globant S.A. shows potential as an investment, certain AI stocks are considered to offer greater upside potential with less downside risk [5]