GigaCloud Technology Stock Is Up 470% in the Past Year. Time to Buy or Stay Away?
One of the hottest stocks on Wall Street has been GigaCloud Technology (NASDAQ: GCT), which was up 470% in the year ending May 23. However, the stock's meteoric rise has also led to scrutiny of the company among investors.
The stock has about 9% of its shares sold short, and has been the subject of two recent scathing reports from short-sellers. Note that short-sellers make money when the stock they are short on goes down. Below is a look at why the stock has been on a tear and some potential red flags.
Investor interest in GigaCloud's stock lies largely in the company's growth. It grew revenue 44% in 2023 to $704 million, while its net income surged nearly 300% to $94 million and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) nearly tripled to $118 million.
Source Fool.com
