GigaCloud Technology (NASDAQ:GCT) stock is taking a beating on Wednesday after the company’s shares were hit with a short report from Grizzly Research.
Grizzly Research alleges in its short report that GigaCloud Technology is a Chinese “hustle” that is manipulating data to attract investors. It claims that the company’s e-commerce website only gets about 50 visitors per month. Even during its peak in June 2022, the firm notes visitors were only at about 1,000 users per month.
Grizzly Research claims that the company remains open by faking its revenue data and distributing products to other sellers. It does so by having employees create shell companies that order products from it.
Here’s a portion of what Grizzly Research said in its short report for GigaCloud Technology:
“We find evidence that GCT is related to a vast network of undisclosed Chinese-controlled entities in the U.S. that help the company manipulate and inflate their key metrics such as the Gross Merchandise Value (GMV), masking the real growth profile of its business. GCT is also possibly abusing these sales channels to inflate up to 40% of their revenue and sales numbers.”
GCT Stock Movement Today
With this short report comes heavy trading of GCT stock as traders unload their shares. That has more than 7.8 million units changing hands as of this writing. That’s well above the company’s daily average trading volume of 3 million shares.
GCT stock is down 6.2% as of Wednesday afternoon.
There are more stock market stories ready to go below!
We have all of the hottest stock market news available on Wednesday! That includes everything happening with shares of BuzzFeed (NASDAQ:BZFD) stock, Tesla (NASDAQ:TSLA) stock and GameStop (NYSE:GME) stock today. You can catch up on all of this at the following links!
More Stock Market News for Wednesday
- Vivek Ramaswamy Is Betting Big on BuzzFeed (BZFD) Stock
- Pepsi Deliveries and 7 Other Updates to Know About the Tesla Semi
- Robert F. Kennedy Jr. Just Bought $24,000 of GameStop (GME) Stock
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
