What is GigaCloud Technology (GCT) and why did it skyrocket today?

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What is GigaCloud Technology (GCT) and why did it skyrocket today?

 What is GigaCloud Technology (GCT) and why did it skyrocket today?
Image source: © Seemitch | Megapixl.com

Highlights:

  • GigaCloud Technology made its debut in the US market on August 18.
  • It is a Hong Kong-based B2B trading platform provider.
  • The company opened at 57 per cent up from its original offering price.

GigaCloud Technology Inc. (NASDAQ: GCT) had created a buzz on Wall Street with a jump of nearly 144 per cent in its price on Friday morning. While many investors would seek more information about the company, here, Kalkine Media® is present to help you with that.

Now, before discussing the stock performance of GigaCloud Technology, let's explore the company first.

What is GigaCloud Technology Inc. or GCT?

As the name suggests, it is a technology firm that provides logistics services through its GigaCloud B2B Marketplace. The business-to-business trade platform specializes in heavy and large merchandise focusing on the furniture industry.

The Hong Kong-based company made its debut in the US market on August 18 and has attracted several eyes in the market since then. The B2B e-commerce solutions provider had announced the pricing of its initial public offering (IPO) of US$ 12.25 per class A ordinary share.

GCT stock started trading on Nasdaq Global Market on Thursday, August 18. Aegis Capital Corp. was the sole book-running manager for the IPO.

The GCT stock opened at 57 per cent up from its offering price. Notably, the Chinese e-commerce firm, JD.com, Inc. (NASDAQ: JD) holds a 12 per cent stake in GigaCloud Technologies.

GigaCloud Technology Inc (GCT) financial highlightsSource: ©Kalkine Media®; © Canva via Canva.com

GigaCloud Technology Inc. (NASDAQ: GCT) financial highlights:

For the three months that ended on March 31, 2022, GigaCloud Technology posted total revenue of US$ 112.44 million, up from US$ 94.52 million in the year-ago quarter. Its net income was US$ 4.73 million for the quarter that ended on March 31, 2022, comparatively less than US$ 7.98 million in the same period of the previous year.

For the year ended on December 31, 2021, its total revenue totalled US$ 414.19 million, a significant jump from US$ 275.47 million in the prior year. Its net income decreased to US$ 29.25 million in 2021, from US$ 37.45 million for the year ended on December 31, 2020.

Bottom line

The GCT stock skyrocketed 143.98 per cent at 9:54 am ET on August 19 to trade at US$ 38.28. Its current trading price holds a market capitalization of US$ 896.07 million.

The company's debut in the US market also surprised several investors amid a hovering tension between Washington and Beijing.

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