GigaCloud Technology (NASDAQ: GCT) experienced a 6.5% increase in its stock price after responding to a short report from Grizzly Research. The Chinese e-commerce company refuted the report, stating that it contained defamatory, selective, inaccurate, incomplete, and misleading statements. GigaCloud emphasized that the report demonstrated a lack of understanding of the company’s business and the types of buyers who use their marketplace.
GigaCloud has stated that there is no merit to the claims made by Grizzly Research regarding purported related party transactions. The company is currently evaluating the claims in the short-seller report and is prepared to take appropriate measures to defend itself. On Wednesday, GigaCloud shares had dropped as much as 20% following the release of the short report, but later recovered to a 5.2% loss for the day. Short interest in GigaCloud is currently at 17.5% of free float.
Despite the initial stock price drop, GigaCloud remains confident in its business operations and is focused on delivering value to its customers and investors. The company is committed to addressing the allegations raised in the short report and protecting its interests in the market.
