Cramer reviews GigaCloud, says the company's story is ‘unnecessarily fraught'

Amazon

  • CNBC's Jim Cramer on Friday reviewed the performance of GigaCloud Technology and suggested that there's "something off" about the situation.
  • "GigaCloud's whole story feels unnecessarily fraught, and with so many good e-commerce and logistics stocks out there—Amazon—I don't think it makes sense to chase this one after a massive run," he said. "Just feels like an unnecessary risk."

CNBC's Jim Cramer on Friday reviewed the performance of GigaCloud Technology, a company that offers business-to-business ecommerce systems for large parcel merchandise, like furniture. He advised staying away from the stock because there's something off about the whole situation.

"GigaCloud's whole story feels unnecessarily fraught, and with so many good e-commerce and logistics stocks out there—Amazon—I don't think it makes sense to chase this one after a massive run," he said. "Just feels like an unnecessary risk."

GigaCloud did not respond immediately to request for comment.

The company connects manufacturers, primarily in Asia, with resellers across the globe. It also sells its own products on the platform as well as on other third-party ecommerce platforms. GigaCloud's stock has soared since it became public in 2022, putting up some great earnings reports, according to Cramer.

But last fall, a report from short-seller firm Culper Research called some of the company's business methods into question. The report questioned how GigaCloud could run the many warehouses it claims to have with so few employees, and found that it had used stock images for some of its marketing materials. Culper also claimed an investigator it sent to some of the company's U.S. warehouses observed "laughably sparse activity" there.

Cramer said he thinks GigaCloud never properly addressed some of Culver's allegations. Despite this report, he said, the stock has still managed to climb — however, it plunged mid-February and saw more volatility after its earnings in March. Cramer was also bothered by the fact that GigaCloud was initially considered a meme stock and said its stock action suggests "somebody out there knows something that I, and we, don't."

"If you take everything about the story at face value, then buying GigaCloud would be a no-brainer," he said. "But after taking a thorough look, I worry there's just something off about this story."

Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest smarter.

Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market.

Disclaimer The CNBC Investing Club Charitable Trust holds shares of Amazon.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram

Questions, comments, suggestions for the "Mad Money" website? [email protected]

OTHER NEWS

4 hrs ago

Cowboys head coach Mike McCarthy 'getting fed up' with owner Jerry Jones: report

4 hrs ago

Who Should Steelers Hope Wins Training Camp QB Battle?

4 hrs ago

Goaltender's dad talks up the Oilers' chances of lifting the Stanley Cup

4 hrs ago

Phillies turn rare 1-3-5 triple play against Tigers, 1st since 1929

4 hrs ago

Discount Burger Check? Chiefs' Reid Shares Hilarious Commercial Story

4 hrs ago

'Devastating loss': Digital lending library, Internet Archive, removes 500,000 books after being sued by publishers

4 hrs ago

Iga Swiatek vs Coco Gauff vs Aryna Sabalenka vs Elena Rybakina: WTA ‘Big 4’ state of play ahead of Wimbledon

4 hrs ago

Would a Toronto byelection loss spell doom for Trudeau?

4 hrs ago

BlackSuit ransomware gang blamed for ongoing car dealership outages

4 hrs ago

'Unreal' injury-time equaliser saves football powerhouse

4 hrs ago

Nigel Farage accused of cosying up to the Kremlin by former NATO boss

4 hrs ago

Dagestan, in southern Russia, has a history of violence. Why does it keeps happening?

4 hrs ago

Marines revive a World War II airfield on Peleliu in Pacific pivot

4 hrs ago

Fortnite Brings Tilted Towers and Other Fan Favorite Locations, But With a Twist

4 hrs ago

Shadow of the Erdtree Puts the Cherry on Top of Elden Rings Main Strength

4 hrs ago

Anger erupts as Albo's governor-general is awarded payrise

4 hrs ago

Charo Makes Rare Public Appearance at Project Angel Food Event: 'Life Is Beautiful' (Exclusive)

4 hrs ago

Boozed-up England fans sing '10 German bombers' chant in Cologne

4 hrs ago

Show Respect: ‘Boys are surprised we talk about this, it’s become normalised’

4 hrs ago

After clash with prosecutor, judge reserves ruling on restricting Trump’s rhetoric about agents’ classified documents search

4 hrs ago

Peter Dutton’s nuclear plan ‘doesn’t deliver’ any ‘energy price decrease’ until 2040

4 hrs ago

Where to watch Netherlands vs. Austria live stream, TV channel, lineups, prediction for Euro 2024 match

4 hrs ago

China lunar probe to return to Earth with samples

4 hrs ago

Report: Knicks’ OG Anunoby declines player option, enters unrestricted free agency

4 hrs ago

Saints offensive line ranked 19th in the NFL

4 hrs ago

Senators acquire goaltender Linus Ullmark from Bruins

4 hrs ago

Why Qld feels like home for the Blues

4 hrs ago

Seahawks waive 3 undrafted free agents, make UFL champ signing official

4 hrs ago

Andrew Scott Frantically Runs to Hear Taylor Swift's ‘Style' at 'Eras Tour'

4 hrs ago

England’s Test series v New Zealand: Date, kick-off time and TV channel

4 hrs ago

Bills' McDermott Says Von Miller Has ‘Something to Prove’

4 hrs ago

US prosecutors want Boeing to face criminal charges

4 hrs ago

Finance Minister Michael McGrath set to become Ireland's new EU Commissioner

4 hrs ago

Red-hot Cardinals get huge boost in return of star catcher

4 hrs ago

How police use the mail to spy on you: 60,000 cases in last decade with little pushback

4 hrs ago

These 3 Republicans are Trump’s most likely VP picks

4 hrs ago

Roy Jones Jr. announces his son, DeAndre, died by suicide

4 hrs ago

Luxury Gyms, Like Equinox and Life Time, Are Taking Over Big Retail Spaces

4 hrs ago

Automobili Pininfarina PURA Vision wins prestigious Red Dot Award: Design Concept 2024

4 hrs ago

Pop legend Robbie Williams wears his AFL jersey to see if he still gets recognised in London - with some very surprising results