GigaCloud Technology (NASDAQ:GCT) experienced a 6.5% increase in its stock price following the release of a short report by Grizzly Research. The Chinese e-commerce company responded to the report, stating that it lacked merit and contained defamatory, inaccurate, and misleading statements. GigaCloud emphasized that the report demonstrated a lack of understanding of the company’s business, particularly regarding the types of buyers who use their marketplace and the services they provide.
On Thursday, GigaCloud issued a statement stating that there was “no merit” to the claims made by Grizzly Research about related party transactions. The company announced that they are evaluating the claims made in the short report and are prepared to take appropriate measures to defend themselves. Despite initially seeing a 20% decline in its stock price in response to the report, GigaCloud managed to pare its losses to 5.2% by the end of the day.
GigaCloud’s short interest currently stands at 17.5% of its free float. The company remains focused on assessing the allegations made in the report and is committed to addressing any concerns raised by investors.
