Globant Shares Plummet 14.93% on JPMorgan Downgrade as $500M Volume Surges 137% to Rank 209th in Active Stocks

Globant (GLOB) closed 14.93% lower on August 15, 2025, with a trading volume of $500 million—137% higher than the previous day—ranking it 209th among active stocks. The selloff followed a downgrade from JPMorgan, which cut its rating to 'Neutral' from 'Overweight' and reduced the price target to $78 from $108. The firm cited weaker-than-expected fiscal 2025 revenue guidance, revised to at least $2.445 billion, and uncertainty over the company's growth trajectory amid macroeconomic headwinds and delayed client decision-making.

Despite the downgrade, retail investor sentiment on Globant remained 'extremely bullish' on Stocktwits, with message volume surging to 'extremely high' levels within 24 hours. The stock saw an 860% spike in user activity, reflecting strong retail engagement despite the sharp decline. CFO Juan Urthiague acknowledged a 'tempered demand environment' in the Q2 earnings call, signaling challenges in maintaining past growth rates.

The 12-month performance of GLOB has deteriorated by 65%, while the 52-week loss exceeds 68%. JPMorgan noted that Globant's historical reputation for premium growth and consistent execution is now under pressure, compounding investor skepticism about near-term recovery prospects.

A strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to present yielded a 0.98% average daily return. Over 365 days, total returns reached 31.52%, demonstrating limited short-term momentum capture amid persistent market volatility and timing risks.