Argentine tech startup gearing up for stock market turbulence resistance
Globant, the Argentine software development juggernaut, has been having a rough ride in 2025's stock market. With its share price more than halved since February, the software group, whose clientele include tech titans like Walt Disney, Santander, and Nissan, is giving tech investors a cause for concern.
The tumult began after Globant reported slower growth, which spooked investors who were already jittery about tech stocks. The decline was then amplified by tariff threats from Trump's administration, fueling a broader market meltdown. In comparison, the tech-heavy Nasdaq100 has shed over 10% this year.
Martín Migoya, Globant's CEO and co-founder, talks about the market's response being "absolutely exaggerated." Established in a bar in Buenos Aires in 2003 with three friends, Migoya is bewildered by the unexpected plunge. Despite the stock sell-off, Globant boasts a market capitalization of nearly $5bn.
In February, Globant announced a revenue growth of 15.3% in 2024, but projected a less than 12% increase for 2025. Compared to an average compound growth rate of 37.1% between 2020 and 2023, this growth slowdown may seem daunting, but Migoya assures that Globant's business "is getting better every year." The company's transformation from a software provider to an AI-focused solution integrator sets it apart in today's market.
Migoya views the implementation of AI as the next industrial revolution, akin to the impact Henry Ford's moving assembly line had on car manufacturing early in the 20th century. "That's the opportunity [of AI] for every process, in every company, in every industry," he explains. With AI, Globant is ready to produce "very big things" if market conditions improve.
Analysts suggest that budget constraints have compelled many firms to dial back investments in tools that Globant offers, ranging from data analytics to robotics and blockchain services. However, Globant faces stiff competition from tech giants like Accenture and EPAM Systems.
Despite these challenges, Globant recorded revenues worth $350mn from its AI-related projects last year, nearly double the figure from 2023. Malcolm Dorson, head of emerging markets strategy at Global X ETFs, believes the stock sell-off was an overreaction to prudent earnings guidance. According to Dorson, the tech group has consistently delivered sustainable earnings, elevating the tech capabilities and increasing efficiencies for blue-chip global companies.
As for AI, fewer than 7% of American businesses with at least 250 employees were using the technology at a company-wide level last year. Migoya paints a picture where AI agents will be integrated into business processes, functioning alongside humans for optimal supervision. In the long term, he envisions the human workforce overseeing AI agents, rather than manual handling of data-intensive tasks.
Globant's growth trajectory is grounded on a decentralized "studio" model, where about 40 departments specialize in various sectors and platforms. The company has also ventured into sports services, collaborating with Formula 1 and Argentina's F1 star Franco Colapinto, as well as FIFA.
Local companies are expanding their investment in Argentina, creating opportunities for Globant, following positive economic reforms from the government. "Seeing Argentina as a positive exception rather than the opposite is very encouraging," Migoya concludes.
- Despite the stock sell-off, Globant, the Argentine software development company, still boasts a market capitalization of nearly $5bn.
- Globant, whose clientele includes tech titans like Walt Disney, Santander, and Nissan, is giving tech investors a cause for concern due to its rough ride in 2025's stock market.
- With AI, Globant is ready to produce "very big things" if market conditions improve.
- In the long term, Martín Migoya, Globant's CEO and co-founder, envisions the human workforce overseeing AI agents, rather than manual handling of data-intensive tasks.
- Malcolm Dorson, head of emerging markets strategy at Global X ETFs, believes the stock sell-off was an overreaction to prudent earnings guidance from Globant.
- local companies are expanding their investment in Argentina, creating opportunities for Globant, following positive economic reforms from the government.
