GigaCloud: Load Up Like An Insider

(9min)

Summary

  • Despite a 50% stock decline, I remain bullish on GigaCloud Technology due to strong business performance and tempting valuation.
  • GCT's Q3 results showed 70% revenue growth and a 47% EPS beat, driven by an 80% YoY increase in Marketplace GMV.
  • Insider buying and a $46 million share repurchase program signal confidence in GCT's undervaluation and potential for a significant upside.
  • Risks include rising procurement and freight costs and potential tariff impacts, but I believe the stock correction is overdone.
  • I'm thinking of adding to my depreciating position once I have such a chance. Given all that, I decided to reiterate my "Buy" rating.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Бизнесмен держит данные о продажах и график экономического роста. Бизнес-планирование и стратегия. Анализ биржевой торговли. Финансовые и �

Remitski/iStock via Getty Images

My Thesis Update

I initiated my coverage of GigaCloud Technology (NASDAQ:GCT) stock in May 2024 and, since then, the price declined by ~50% while the broader market gained over 15% in total returns. I kept my bullish rating in

Struggle to access the latest reports from banks and hedge funds?

With just one subscription to Beyond the Wall Investing, you can save thousands of dollars a year on equity research reports from banks. You'll keep your finger on the pulse and have access to the latest and highest-quality analysis of this type of information.

This article was written by

7.23K Followers

Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GCT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About GCT Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on GCT

Related Stocks

SymbolLast Price% Chg
GCT
--