Globant (GLOB) Has Completed More Than 500 AI-Centric Projects

Harding Loevner, an asset management company, released its “Global Equity Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund generated a 6.9% gross of fee return in the first quarter compared to an 8.3% gain for the MSCI All Country World. Despite rising bond yields, the stock market gained throughout the quarter, partly because of continued interest in the potential applications of artificial intelligence. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Harding Loevner Global Equity Strategy highlighted stocks like Globant S.A. (NYSE:GLOB), in the first quarter 2024 investor letter. Globant S.A. (NYSE:GLOB) is a Luxembourg-based technology services company. The one-month return of Globant S.A. (NYSE:GLOB) was -7.91%, and its shares lost 11.44% of their value over the last 52 weeks. On May 29, 2024, Globant S.A. (NYSE:GLOB) stock closed at $165.38 per share with a market capitalization of $7.135 billion.

Harding Loevner Global Equity Strategy stated the following regarding Globant S.A. (NYSE:GLOB) in its first quarter 2024 investor letter:

"The dynamics are similar for IT-service providers, which help other businesses with their tech needs. For example, Accenture and our new investment, Globant S.A. (NYSE:GLOB), are poised to benefit as smaller enterprises in their customer base begin to demand AI capabilities.

When businesses adopt AI, it is a significant endeavor that requires the help of IT-consulting companies. During the quarter, we purchased Globant, a company that performs this work for customers including Disney and Google. Globant, which has 70% of its workforce in Latin America, has completed more than 500 AI-centric projects in fields such as predictive analytics, natural-language processing, and computer vision. Recent projects include a system for fraud and anomaly detection for Latin American e-commerce giant MercadoLibre, a personalized marketing campaign using Salesforce’s Einstein tool to help a glucose monitoring and diabetic management device maker called LifeScan reach its targeted audience, and real-time drilling-operation management to improve efficiency and precision for the energy company Tecpetrol. As AI continues to be a thread among its clients’ projects, Globant projects revenue will climb 16% this year, well ahead of Gartner’s forecast for the IT-services industry. We believe that after the current wave of spending on AI infrastructure (such as chips, servers, and data centers) there will be another wave to deploy the business applications of AI. This is why the best consultants, such as Globant, that have expertise in different verticals as well as AI stand to outperform."

A close up view of a person's hands typing on a computer keyboard, emphasizing internet-based information technology services.

Globant S.A. (NYSE:GLOB) generated $571.1 million in revenues in the first quarter, a 20.9% increase year-over-year. Globant S.A. (NYSE:GLOB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Globant S.A. (NYSE:GLOB) at the end of the first quarter which was 26 in the previous quarter.

In another article, we discussed Globant S.A. (NYSE:GLOB) and shared Baron FinTech Fund's views on the company in the first quarter 2024. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.