CNBC's Jim Cramer on Friday reviewed the performance of GigaCloud Technology and suggested that there's"something off" about the situation.
"GigaCloud's whole story feels unnecessarily fraught, and with so many good e-commerce and logistics stocks out there—Amazon—I don't think it makes sense to chase this one after a massive run," he said."Just feels like an unnecessary risk.", a company that offers business-to-business ecommerce systems for large parcel merchandise, like furniture. He advised staying away from the stock because there's something off about the whole situation.
The company connects manufacturers, primarily in Asia, with resellers across the globe. It also sells its own products on the platform as well as on other third-party ecommerce platforms. GigaCloud's stock has soared since it became public in 2022, putting up some great earnings reports, according to Cramer.
But last fall, a report from short-seller firm Culper Research called some of the company's business methods into question. The report questioned how GigaCloud could run the many warehouses it claims to have with so few employees, and found that it had used stock images for some of its marketing materials. Culper also claimed an investigator it sent to some of the company's U.S. warehouses observed"laughably sparse activity" there.some of Culver's allegations.
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Source: CNBC - 🏆 12. / 72 Read more »