Former Meme Stock Darling GigaCloud Technology (GCT) Proves It Was Worth The Attention

GigaCloud Technology (GCT) reported blowout Q2 results this morning. Indeed, driven by stronger-than-anticipated market demand for large parcel merchandise, revenues for the period rose 23.5% year-over-year to $153.1 million, which was $11.8 million (or 8%) better than expected. This outperformance was led by services revenue from GigaCloud 3P, which was up 31.9% to $43.3 million as 69.2% and 62.1% surges in last-mile delivery and warehouse services sales more than made up for a 61.8% drop in ocean transportation services sales resulting from the lower pass-through of ocean freight costs as shipping rates continued to decline. Product revenues from GigaCloud 1P and Off-platform E-commerce were also strong, with the former climbing 14.9% to $69.8 million on increased spending per active buyer and the latter surging 31.6% to $40.1 million driven by increased demand from certain third-party online selling sites. And thanks to the additional boost its margins received from the decline in ocean freight costs also more than making up for higher staff and delivery expenses, earnings tripled from 15 cents last year to 45 cents per share and beat the 37 cents analysts were projecting by an even wider margin of 8 cents (or 22%).