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GCT Stock Price Prediction for 2022: $500 per share

MY GCT Price Prediction is $500 per share in 2022. I like the stock.

GCT IPOed on August 18th 2022 and now the stock is up over 200% in just 2 trading days.

I want to give you my thesis on why I bought GCT stock and how I believe the stock will play itself out over the next couple of weeks.

This isn’t financial advice. I’m just giving you my entire thought process and combining hours of research on one page.

GCT Price Forecast: $100 per share

InvestorTrip’s 2022 Price target for GigaCloud Technology stock is $500 per share. The bull case is massive for GCT shares because HKD stock soared to $2,500 after its July IPO and something similar could happen to GCT.

GCT Price Targets for 2022

2022 Price Target (per share)Details
Fair Value: $500GigaCloud Technology grows revenue, boost net income, and GCT shareholders HODL
Bull Case: $1,200GCT soars to the moon like HKD stock and becomes HKD 2.0
Bear Case: $50Early GCT investors dump their shares and send the price crashing after the lockup period expires

Overview

GigaCloud Technology is a Hong Kong Based operator of the GigaCloud Marketeplace where over 400 3rd party sellers and 3,700+ active buyers transact on large items such as furniture and appliances.

The company generated $112 million in revenue during Q1 2022 and filed for its NASDAQ IPO to tap the equity markets for extra liquidity.

The IPO offered 2.9 million shares for a total of $36 million. There are a total of 40 million shares outstanding with a float of just 400k shares.

There are no tradable options available for GCT stock. You can only buy GCT shares or short the stocks

Read GCT’s SEC Prospectus if you want a comprehensive overview of the company.

My YOLO Investment Thesis

I watched in amazement as HKD stock IPOed in July 2022 and went from just $7.80 to $2,500 at its peak. I never imagined that a stock could do a 300x in just 2 weeks.

HKD Stock Jumped to $50 in just 4 trading days after IPO

That’s exactly what happened to AMTD Digital, a Singapore based investment firm that’s calls itself the “largest investment firm in Asia”.

I decided to actively watch the IPO calendar moving forward to see if I could discover another potential 100x stock for myself and my readers.

GigaCloud Technology is a profitable company with growing revenue and a low share float. It’s possible that GCT could run much higher if investors HODL the shares and send the stock to the moon.

Now I know YOLO stocks are super risky and I got burned pretty bad by Bed Bath & Beyond when Ryan Cohen sold his entire stake.

So I’m not putting a ton of money into GCT to avoid losing my shirt. But I do own a few shares as a lotto ticket just in case GCT soars to the moon.

Is GCT The Next HKD?

Could GCT stock be considered HKD 2.0? Here are several reasons why GCT stock can soar to the moon:

  • GCT has a low float of just 395k shares (there aren’t enough shares to go around). Low supply + high demand = high stock price.
  • There are only 40 million shares outstanding if you include pre-IPO shareholders.
  • HKD went from $7.80 to $2,500 and GCT’s stock price is around $50
  • The same HKD apes that made a fortune on HKD stock will probably load up on GCT because it worked the first time around.
  • GCT shares have an IPO lockup period of 180 days to prevent early investors from dumping the stock too soon. The lockup period started on August 17th and ends on February 17th 2023.

GCT stock has a market cap of around $2 billion while HKD stock traded at a peak market cap of $425 billion.

If GCT stock peaked at the same market cap as HKD stock did then GCT would be worth $10,600 per share!

I don’t think that will happen but I’m not ruling out the possibility of $1,000+ per share at an extremely bullish price target.

Valuation

Now let’s talk numbers because I’m super careful about fundamentals after witnessing the BBBY stock crash.

The good news is GCT is profitable and has positive revenue growth over the last 3 years.

GigaCloud Technology generated $112 million in revenue during Q1 2022 and earned just under $5 million in net income.

The company has $48 million in cash on its balance sheet with $216 million in debt. To help improve cash flow, GigaCloud Technology opened a $50 million loan with Wells Fargo.

Since GCT is profitable, we can compare its P/E ratio to other companies

CompanyP/E Ratio
GigaCloud Technology (GCT)25
Alibaba (BABA)41
AMTD Digital (HKD)1,000
SEA Limited (SE)-4
Amazon (AMZN)124

At minimum, I believe GCT is a $100 stock just on its Price to Earnings valuation alone. The company can use the IPO to boost visibility and attract new business.

3rd party sellers and active buyers will most likely increase and help drive higher revenue, net income, and retained earnings.

Remember: There is a 180 day lockup period that prevents insiders and early investors from dumping their stock on retail investors. That means retail investors shouldn’t worry about getting the Ryan Cohen treatment.

That is definitely a big sigh of relief and makes me a lot more bullish on GCT over the next 6 months.

Summary

GCT stock could soar to the moon just like HKD stock did. Once GCT breaks $100, I expect retail investors to FOMO into the stock and send it much higher.

The 6 month lockup period will help stabilize the share price and prevent a profit taking dump from insiders.

Don’t underestimate the power of a high flying stock with lots of buyer interest.

Nobody thought HKD stock would hit $2,500 but it did.

What do you think? Leave a comment below and share your thoughts on GCT stock.

Disclosure: I’m holding 5 GCT shares long. Check out my entire portfolio.

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