GigaCloud Revenue Forecast Disappoints, Stock Falls

GigaCloud Technology Inc. recently faced a notable decline in its stock price, dropping 11% over the past week and 21% in pre-market trading due to a disappointing revenue forecast for Q1 2025, which estimated revenues between USD 250 million and USD 265 million against Wall Street's expectations of USD 271.4 million. Despite this, the company reported a significant revenue increase in 2024, surpassing USD 1 billion, with a 65% rise year-over-year driven by the expansion of its GigaCloud Marketplace. However, net income for Q4 2024 decreased by 12.9% year-over-year, contributing to investor concerns about profitability. GigaCloud has attempted to address these challenges by appointing a new CFO and expanding its global fulfillment network. While the company has underperformed the market in early 2025, its long-term growth prospects are supported by strategic acquisitions and robust GMV growth, particularly in Europe. The company's future stock performance may largely depend on its earnings outlook and management's strategic initiatives.