Companies Struggle to Quantify AI Investment Returns

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: 1 day ago

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GLOB+1.4%

CRM+3.41%

MSFT+2.66%

Should l Buy GLOB?

Source: CNBC

Current AI Investment Landscape: A ModelOp survey reveals that over two-thirds of enterprises rely on estimates to assess AI investment returns, indicating a widespread challenge in quantifying AI benefits, which may lead to misallocation of resources.
Monitoring Usage Data: Microsoft's tools assist companies in tracking AI usage, including active users and prompt volume; however, many organizations remain in the experimentation phase, with only 39% reporting measurable impacts on earnings, reflecting limitations in technology application.
Productivity vs. Cost: In some workplaces, AI usage is viewed as a productivity metric, leading to competition among employees on internal leaderboards; however, this

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Analyst Views on GLOB

Wall Street analysts forecast GLOB stock price to rise

13 Analyst Rating

5 Buy

8 Hold

0 Sell

Moderate Buy

Current: 40.690

Low

61.00

Averages

76.36

High

100.00

Current: 40.690

Low

61.00

Averages

76.36

High

100.00

UBS

Neutral

downgrade

$75 -> $50

2026-05-05

New

Reason

UBS

Price Target

$75 -> $50

AI Analysis

2026-05-05

New

downgrade

Neutral

Reason

UBS lowered the firm's price target on Globant to $50 from $75 and keeps a Neutral rating on the shares.

Wedbush

initiated

$61

2026-04-09

Reason

Wedbush

Price Target

$61

2026-04-09

initiated

Reason

As previously reported, Wedbush initiated coverage of Globant with an Outperform rating and $61 price target. IT Services remain integral to cloud computing initiatives and the usage of AI technologies with many organizations serving as key enablers of the next stage of operational advancement and digital transformation, Wedbush notes. While spending on IT projects has increased incrementally, it has fluctuated meaningfully since the pandemic, but the firm believes discretionary projects will start to slowly recover as more global enterprises pursuing an AI-driven strategy turn to third parties with significant knowledge on AI deployments.

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About GLOB

Globant S.A. is a digitally native technology services company. The Company’s principal operating subsidiary is based in Buenos Aires, Argentina. During the year ended December 31, 2015, 83.7% of its revenues were generated by clients in North America, 11.0% in Latin America and Asia, and 5.3% in Europe. It builds digital journeys, which consists of different software products, including mobile apps, Web apps, sensors and other software and hardware appliances that work orchestrated by a backend that uses big data and fast data to create a understanding of each consumer and how to act upon each scenario. The Company delivers digital journeys with a comprehensive approach that includes Stay Relevant, which helps its customers stay fit for the future of their industries; Discover, which think and conceive specific digital journeys for each customer; Build, which creates each digital journey leveraging the work of its Studios, its services over platforms and its agile pods methodologies.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Class Action Lawsuit Announced for Globant S.A. Investors

14 hours agoGlobenewswire

Class Action Initiation: Rosen Law Firm has filed a class action lawsuit on behalf of investors who purchased Globant S.A. stock between February 15, 2024, and August 14, 2025, with a deadline of June 23, 2026, for potential lead plaintiffs, indicating ongoing legal proceedings.
Potential Compensation Opportunity: Investors may receive compensation without any out-of-pocket costs through a contingency fee arrangement, which facilitates participation and may encourage more affected shareholders to join the lawsuit.
Latin American Business Issues: Despite Globant's announcement of a $1 billion strategic pivot to enhance its Latin American operations in mid-2023, the lawsuit claims that the company faced significant challenges, including declining demand, client defections, and project cancellations, leading to investor losses due to misinformation.
Employee Turmoil Impact: The freezing of employee wages in Latin America has exacerbated employee dissatisfaction and degraded client service quality, highlighting major execution failures in the company's strategy that could negatively affect its future market performance.

Class Action Lawsuit Announced for Globant S.A.

1 day agoPRnewswire

Class Action Initiation: Rosen Law Firm has announced a class action lawsuit on behalf of investors who purchased Globant S.A. common stock between February 15, 2024, and August 14, 2025, allowing potential lead plaintiffs to apply by June 23, 2026, without any out-of-pocket costs.
Failed Strategic Pivot: The lawsuit claims that Globant's $1 billion strategic pivot to enhance its Latin American business, announced in mid-2023, was unsuccessful, as the company faced declining demand, client defections, and project cancellations, leading to investor losses.
Employee Turmoil: Globant's decision to freeze wages for employees in Mexico and Argentina exacerbated operational issues in Latin America, resulting in widespread employee dissatisfaction and degraded client services, which negatively impacted the company's reputation.
Law Firm's Track Record: Rosen Law Firm is recognized for its success in securities class actions, having recovered over $438 million for investors in 2019 alone, underscoring the importance of selecting experienced legal counsel for potential plaintiffs.

Class Action Reminder for Globant S.A. Shareholders

1 day agoPRnewswire

Lawsuit Background: Robbins LLP reminds all investors who purchased Globant S.A. (NYSE:GLOB) common stock between February 15, 2024, and August 14, 2025, that a class action has been filed, alleging the company misled investors regarding the success of its Latin American business.
Strategic Failure: Despite Globant's announcement of a $1 billion strategic pivot in 2023 to enhance its Latin American operations, the company faced significant issues such as declining service demand, client defections, and project cancellations, indicating that the strategy was not successful.
Employee Impact: Amidst the challenges in its Latin American operations, Globant froze wages for employees in Mexico and Argentina, exacerbating employee unrest and degrading client service quality, which negatively affected the company's overall performance.
Stock Price Reaction: On August 14, 2025, Globant disclosed the true extent of its failures in Latin America, resulting in a stock price drop from $78.12 to $66.46, reflecting market pessimism regarding the company's future outlook.

Globant Faces Class Action Lawsuit Over Securities Fraud

1 day agoGlobenewswire

Class Action Filed: Pomerantz LLP has announced a class action lawsuit against Globant, alleging securities fraud and other unlawful business practices by the company and certain officers, with investors needing to apply as Lead Plaintiff by June 23, 2026, indicating significant legal risks that could impact the company's market reputation.
Declining Latin American Revenue: In its Q1 2025 report, Globant revealed a 9% year-over-year decline in Latin American revenue, particularly in Mexico and Brazil, with CEO Migoya describing the market as facing challenges, which could negatively affect future growth expectations for the company.
Stock Price Volatility: Following disappointing financial results, Globant's stock price plummeted by 27.81% on February 21, 2025, and 23.61% on May 16, 2025, reflecting investor concerns over the company's financial health and potentially leading to further declines in market confidence.
Increased Restructuring Costs: In Q2 2025, Globant reported a $47.6 million restructuring charge and a 2% reduction in headcount, indicating the company is taking steps to navigate a challenging economic environment, but this may also affect employee morale and operational efficiency.

Globant Faces Class Action Lawsuit Reminder

1 day agoGlobenewswire

Class Action Reminder: The Schall Law Firm reminds investors of a class action lawsuit against Globant S.A. for violations of securities laws, concerning securities transactions between February 15, 2024, and August 14, 2025, with a deadline to contact the firm by June 23, 2026, for participation.
False Statement Allegations: The complaint alleges that Globant made false and misleading statements regarding its 'Latin American pivot,' claiming market leadership while failing due to declining demand and project cancellations, which misled investors.
Employee Morale Impact: The company's decision to freeze wages in certain Latin American countries has negatively affected employee morale and client service levels, raising further concerns about management effectiveness and eroding public trust.
Investor Losses: As the market learned the truth about Globant, investors suffered losses, prompting the Schall Law Firm to encourage affected shareholders to join the lawsuit for compensation, reflecting a pessimistic outlook on the company's future.