EL MONTE, Calif. - GigaCloud Technology Inc (NASDAQ:GCT), a provider of B2B technology solutions for large parcel merchandise, has publicly countered allegations from a report by Grizzly Research LLC, a short-selling firm. The report, dated May 22, 2024, questioned the company's web traffic and suggested undisclosed related party transactions.
GigaCloud stated that the short-seller report is baseless and includes defamatory and misleading accusations. The company clarified that the third-party data cited by Grizzly Research only represents search engine performance and not the total website traffic. GigaCloud's own data for April 2024 showed approximately 130,000 total visits and 11,000 unique visitors, which aligns with the nature of their business-to-business (B2B) platform.
The company emphasized that its marketplace primarily serves resellers, not end consumers, and that the level of traffic is consistent with its disclosures of having around 5,010 active buyers in 2023. GigaCloud also addressed the allegations regarding related party transactions, affirming that all such transactions are disclosed as required by SEC regulations and accounting standards.
Furthermore, GigaCloud argued that the transactions through certain entities are legitimate, with sales that can be validated through records of deliveries to end customers. These assertions are supported by reported expenses for delivery and logistics services.
The company warned investors about the short-seller's admission that its report contains views not stated as facts and that it stands to gain if GigaCloud's stock price falls. GigaCloud urged investors to consider official company materials filed with the SEC and available on its investor relations website.
GigaCloud Technology Inc, which launched its marketplace in January 2019, connects manufacturers with resellers for cross-border transactions and offers comprehensive solutions for product delivery from manufacturer to end customer. The company has expanded from focusing on the global furniture market to include home appliances and fitness equipment.
This article is based on a press release statement from GigaCloud Technology Inc.
InvestingPro Insights
In the midst of GigaCloud Technology Inc's (NASDAQ:GCT) rebuttal to allegations from Grizzly Research LLC, potential investors and current shareholders may find the real-time data and insights from InvestingPro particularly informative.
Despite the recent negative press, analysts are optimistic about GigaCloud's future, anticipating sales growth in the current year. This aligns with the company's impressive revenue growth of 63.65% over the last twelve months as of Q1 2024, a key metric demonstrating GigaCloud's expanding market presence.
InvestingPro data also shows a substantial price uptick of 214.66% over the last six months, reflecting a strong market confidence in the company's performance and potential. Moreover, the company's market capitalization stands at $1.22 billion, with a forward-looking P/E ratio of 11.34, suggesting a potentially attractive valuation for investors considering the company's growth prospects.
For those looking to delve deeper into GigaCloud's financial health and stock performance, there are additional InvestingPro Tips available. Notably, the stock has experienced high price volatility, and it has taken a significant hit over the last week with a price total return of -17.62%.
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