Shares of Global-E Online Ltd. (GLBE) plummeted 5.33% in Wednesday's trading session, despite the company reporting better-than-expected second-quarter results and raising its full-year revenue guidance. The sharp decline comes as a surprise, given the initial positive reaction to the earnings report in pre-market trading.

Global-E, which provides cross-border e-commerce solutions, reported Q2 earnings of $0.06 per diluted share, surpassing analyst expectations of $0.03 per share. Revenue for the quarter reached $214.9 million, up 27.9% year-over-year and exceeding the consensus estimate of $208 million. The company also achieved GAAP profitability with a net profit of $10.5 million for the quarter.

However, the stock's dramatic reversal from pre-market gains to intraday losses may be attributed to the company's third-quarter revenue guidance, which fell short of analyst expectations. Global-E forecasts Q3 revenue between $214 million and $221 million, with the midpoint slightly below the $217.4 million anticipated by analysts. This conservative outlook appears to have overshadowed the positive Q2 results and the raised full-year guidance, leading to a sell-off during regular trading hours. Additionally, some investors may have engaged in profit-taking following the initial surge, contributing to the downward pressure on the stock price.