Sep. 6 at 12:43 AM
@Legitimate
$GLOB
In short, my thesis is that most clients will need help implementing AI (you remember that recent report that 95% of AI projects didnt yield a profit?), and some IT services names are better positioned than others.
I did a TON of fundamental work earlier this year, starting with the larger names
$ACN $IT $EPAM and worked my way down, about a month ago i was going to pull the trigger on
$IT when it dropped to
$225 area, but decided to focus on
$GLOB (smaller at
$3BN but larger than DAVA and with better scale) and i finally got involved recently thinking paying 10.5x for GLOB made sense...now i think in a (further) downturn we could see
$48 if we trade at 8x
If you look at p/e
$DAVA is even cheaper than
$GLOB (both ACN and IT are trading at even higher mult), but in terms of EPS while GLOB isnt growing double digits, DAVA is actually shrinking a bit..
What else worries me? year end tax selling is probably going to be brutal for names down 70%... this is now a '26 story
