Why Gorilla Technology Stock Dived This Week

Why Gorilla Technology Stock Dived This Week

Why is Gorilla Tech down this week? © Provided by Motley Fool. Why is Gorilla Tech down this week?

what happened

Investors in Gorilla Technology Group (NASDAQ: GRRR ) had a rough week, as shares fell 39% in Thursday trading. That compared with a 0.1% decline for the broader market, according to data from S&P Global Market Intelligence. In the year By 2023, the number of professionals in the field of video analytics and cyber security will decrease by more than 60%.

This week's decline came as investors digested the fourth-quarter earnings report, which contained weak growth and revenue news.

so what

After its recent IPO, Gorilla Tech is taking an important strategic step to build a more sustainable business. In fact, the company is not known much from its previous iteration. It has a completely new management team, has changed its product focus and is now targeting a new customer base.

The move led to a sharp drop in sales in 2022, with revenue dropping from $42 million to $22 million. "Elements of the transition have been challenging," CEO Jay Chandan said in a press release.

Another result of the change was a net loss of $88 million, down from $9 million a year ago.

Now what

The new management team has high hopes for a recovery strategy that focuses on cyber security and global markets as well as high-value products. Gorilla Tech has won several major contracts in these areas, and these achievements will significantly increase its profits in 2023. In fact, management expects sales of $65 million to $75 million.

But investors don't have much concrete evidence to rely on beyond the bright 2023 forecast. Gorilla Tech's new management team continues to build on its reputation with shareholders. As a result, the stock may remain highly volatile until investors see improvement in terms of sales growth, profitability and positive cash flow.


We like 10 stocks more than Gorilla Technology Group.

If our panel of analysts has a tip, it's worth listening to. After all, the Motley Fool Stock Advisor newsletter, which has been around for more than a decade, has tripled the market.

Investors named the ten best stocks to buy right now… and Gorilla Technology Group wasn't one of them. That means you think those 10 stocks are doing even better.

See 10 promotions

* Stock Advisor provides earnings from March 8, 2023.

Demitri Kalageropoulos has no position in the above shares. The Motley Fool has no position in the stocks listed. The Motley Fool has a disclosure policy.

Webinar Unlimited Perspectives LP. Kurt Wuckert Jr. Gorilla Pool of Bitcoin Infrastructure

106 thoughts on “Why Gorilla Technology Stock Dived This Week

  1. I believe what you postedwrotesaidbelieve what you postedtypedsaidthink what you postedtypedthink what you postedtypedsaidWhat you postedwrotesaid was very logicala bunch of sense. But, what about this?consider this, what if you were to write a killer headlinetitle?content?typed a catchier title? I ain’t saying your content isn’t good.ain’t saying your content isn’t gooddon’t want to tell you how to run your blog, but what if you added a titlesomethingheadlinetitle that grabbed people’s attention?maybe get a person’s attention?want more? I mean %BLOG_TITLE% is a little plain. You might peek at Yahoo’s home page and see how they createwrite news headlines to get viewers to click. You might add a related video or a pic or two to get readers interested about what you’ve written. Just my opinion, it might bring your postsblog a little livelier.

  2. Hi there! I know this is kinda off topic however I’d figured I’d ask. Would you be interested in exchanging links or maybe guest writing a blog article or vice-versa? My site addresses a lot of the same subjects as yours and I believe we could greatly benefit from each other. If you are interested feel free to send me an e-mail. I look forward to hearing from you! Awesome blog by the way!

  3. Wow, awesome blog structure! How long have you ever been running a blog for?
    you make blogging glance easy. The entire glance of your web
    site is fantastic, let alone the content material!
    You can see similar here dobry sklep

Leave a Comment

error: Content is protected !!