GigaCloud sinks after Culper finds ‘laughably sparse activity’ at warehouses

Culper Research announced a short position in GigaCloud Technology, saying the company’s business “is a fraction of what it has claimed.” GigaCloud claims to run 14 U.S. warehouses, yet the company discloses just 73 employees in the entire U.S., implying just 5 employees per warehouse, Cupler said in a report published on its website. “Simply put, we don’t think it’s at all possible to profitably run 14 warehouses with over 3.7 million square feet which supposedly distribute hundreds of millions of dollars of furniture with this few people,” the firm wrote. Culper found “laughably sparse activity” after staking out GigaCloud’s 9 warehouses in its two main east coast and west coast regions. Shares of GigaCloud are down 9% to $8.65 in morning trading.