What happened to Globant's stock and value
The selloff started in February 2025, and Globant has since become the second-worst name in a peer group tracked alongside the Bloomberg World IT Services index, with declines running more than four times deeper than that benchmark. Today the business is valued at under $2 billion, compared with $13 billion as of late 2021. Even so, shares have rebounded nearly 30% since hitting a 10-year low in late June.
The pivot: Globant's move to AI and its products
Globant is leaning into artificial intelligence with Glob.AI, a platform that lets customers use AI Pods where agents operate under the guidance of engineers. The firm says work that used to take close to two months in consulting can now be done in a matter of days. "We're creating an industry from scratch, and that's not something that happens every year," Migoya said in Buenos Aires. "This is like the early days of the cloud, when people didn't really understand what it was."
Migoya wants to scale the AI business as tech giants pour roughly $700 billion into AI infrastructure, arguing that spending will spill over to the wider ecosystem, including services Globant offers. He is not abandoning legacy services, which still generate the bulk of revenue, but he aims to tilt more of the company toward the new model that he believes can deliver better margins and a sturdier business over time. To spearhead the AI effort, the company hired Sarab Narang, formerly an executive at Amazon Web Services, and Globant projects AI will make up between 4% and 6% of sales by year-end.
Why management is doubling down and how the market sees it
Deutsche Bank senior equity analyst Nate Svensson said, "The market is pricing in a structural reset rather than a cyclical slowdown for Globant and IT services peers." Some see room for a comeback. Morgan Stanley called Globant its "favorite play for an eventual industry re-acceleration," even after cutting its projections this year. Its view is that AI services could account for 20% of revenue by the time the decade wraps up.
Competitors are also reshaping around AI. EPAM Systems is building an "AI-native" delivery approach, while Cognizant is weaving AI more tightly into its offerings and gradually moving away from hourly billing. What sets Globant apart, analysts say, is the pace of its shift and a willingness to let the new model cannibalize portions of the old business to speed the transition.
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What investors should take away
The stakes are real for a company with about 27,400 employees across the US, Europe, Latin America and India. The bet is that AI will unlock new types of work and fatten margins enough to offset revenue lost as fewer engineers complete projects faster.
Near term, investors are feeling the bumps. Globant trimmed its full-year revenue outlook in August after second-quarter results, citing AI-related growing pains, project delays in the Middle East tied to the war in Iran, and stronger Latin American currencies pushing up labor costs. The company has been repurchasing stock, which Migoya has called one of its highest-return uses of cash.
The bigger picture for your money
Founded in Buenos Aires in 2003, Globant marked a milestone in 2014 as the first software company from Latin America to make its debut on the New York Stock Exchange. It develops software and digital products for major clients such as Walt Disney Co., which contributes nearly one-tenth of its revenue. Roughly half of sales come from North America, with most of the remainder split between Europe and Latin America.
For everyday investors, the through-line is simple to watch: Globant is pushing hard into AI Pods that speed up delivery, aiming to ride knock-on demand from around $700 billion in AI infrastructure buildout. The company says AI will be a small but growing slice of revenue by year-end, while the core business faces pressure as the model shifts. The timing of that crossover matters more to your wallet than the headlines do.
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