GigaCloud Technology Inc (NASDAQ:GCT) ranks sixth on Insider Monkey’s list titled Jim Cramer Says You Should Stay Away from These 7 Stocks.
Let’s take a detailed look at why Cramer is bearish on the stock, which is up 60% so far this year.
Jim Cramer in a latest program yet again lamented over the market’s obsession about the Fed’s stance over sticky inflation, saying the latest Fed minutes from April 30 to May 1 spooked investors because the central bank officials seem to be getting “impatient” with the inflation’s slower-than-expected decline.
However, Cramer said that economic data released after these Fed minutes showed that the labor market as well as inflation are cooling, exactly what the Fed wants. Cramer said had the Fed officials seen this data before, their minutes would have been different.
Cramer said that the Fed needs to know that their “inflation lamentation” from three weeks ago isn’t necessary.
Jim Cramer said that consumer spending has been the biggest issue for the Federal Reserve as they wonder, “is they any place that’s too high for them (consumers).” Cramer acknowledged that without putting brakes on consumer spending it’d be impossible to beat inflation.
However, the CNBC host said that if Fed officials had paid attention they’d have found that they are “finally” winning their battle against consumer spending too.
Jim Cramer said there are “nascent signs” showing that the consumers are finally saying “enough is enough.” Cramer pointed to Walmart’s latest numbers as a sign of consumers’ preference for discount retailers. Cramer said Walmart is one of the few companies offering value in budget.
“After years of seemingly endless price increases, the consumer has had enough. Consumers are now staying more at home.”
Jim Cramer also highlighted latest comments from Kevin Hourican, the CEO of Sysco, which supplies food products to restaurants. Hourican said that the industry needs to do “something” about the rising prices that are affecting foot traffic at restaurants.
GigaCloud Technology Inc (NASDAQ:GCT)
Number of Hedge Fund Investors: 13
Jim Cramer recently talked in detail about B2B marketplace services company GigaCloud Technology Inc (NASDAQ:GCT). Cramer said GigaCloud Technology Inc’s (NASDAQ:GCT) business model of connecting manufacturers in Asia with resellers in the rest of the world is a “cool idea.” Cramer highlighted that GigaCloud Technology Inc (NASDAQ:GCT) became a “meme stock rising from $12 to $62, thanks to the “memesters,” before “collapsing.” Cramer said that GigaCloud Technology Inc (NASDAQ:GCT) became the target of a short-seller report published by Culper Research, in which some of GigaCloud Technology Inc’s (NASDAQ:GCT) business practices were called into question. Cramer thinks GigaCloud Technology Inc (NASDAQ:GCT) didn’t clarify all of the allegations.
While Cramer praised GigaCloud Technology Inc’s (NASDAQ:GCT) numbers and expansion, he’s put off by the stock’s volatility and lack of GigaCloud Technology Inc’s (NASDAQ:GCT) response to allegations.
“Somebody out there knows something that I and we don’t.”
Cramer said in the presence of several quality ecommerce and logistics stocks, it wouldn’t make sense to “chase this one after a massive run.”
GigaCloud Technology Inc (NASDAQ:GCT) ranks 6th in the list of 7 Stocks Jim Cramer is Bearish On.
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Disclosure: None. This article is originally published at Insider Monkey.
