Gorilla Technology Group's AI Pivot Draws Scrutiny Amid Soaring Stock Price

Short Seller Targets Gorilla Technology Group Stock, Investors Take Profits - Gorilla Tech Gr (NASDAQ:GRRR)

Gorilla Technology Group Inc GRRR shares are tanking Thursday after The Bear Cave released a short report on the company. Here's what investors need to know. What To Know: Short seller The Bear Cave released a bearish report on Gorilla Technology Thursday morning in response to the stock's approximately 1,200% rise over the past six months, driven by retail investor enthusiasm surrounding recent partnership announcements. "The Bear Cave believes recent retail investor enthusiasm for the company may be premature," the short seller said. The Bear Cave pointed out several red flags at Gorilla Technology including the company's aggressive pivot to AI technology, its revenue streams, unconventional partnerships and controls over financial reporting. Benzinga has reached out to Gorilla Technology Group for comment on The Bear Cave report. The Bear Cave noted that Gorilla Technology was founded in 2001 as a video analytics company. The company recently pivoted its focus to AI technology under current chairman and CEO Jay Chandan, who also led the special purpose acquisition company (SPAC) that brought Gorilla public in 2022. Check This Out: Victoria's Secret Turnaround In Progress But Challenges Remain: Analyst Lowers Forecast The short seller highlighted a myriad of trendy technologies that Gorilla says it focuses on including smart cities, blockchain technology, AI and the Internet of Things. The Bear Cave also noted that in the company's most recent annual report, it disclosed that approximately 94% of revenue came from two customers: the Government of Egypt and the Criminal Investigation Bureau of Taiwan. Despite the underwhelming financials, retail investors have bid up the stock on the back of a series of optimistic announcements including a deal with ONE Amazon to power the "Internet of Forests" in the Amazon Rainforest. The Bear Cave also raised questions around the company's financial reporting, noting that the company's former CFO resigned with "no apparent notice" in September 2024 and was replaced by a CFO who appears to have limited experience. "Even for the most trusting investor, some of Gorilla's statements seem to be a stretch," the short seller said. Gorilla Technology's longtime auditor was also dismissed last year after the company disclosed material weaknesses in its internal control over financial reporting. The company engaged an auditor from Marcum Asia who has served as an audit engagement partner for several other companies, all of which have performed poorly in public markets, according to The Bear Cave. GRRR Price Action: Gorilla Technology shares were down 22.5% at $32.24 at the time of publication Thursday, according to Benzinga Pro. Read Next: Oil Prices Hit Multi-Year Lows As OPEC+ Production, Tariffs Weigh On Market This illustration was generated using artificial intelligence via Midjourney. GRRRGorilla Technology Group Inc$32.42-22.6%OverviewMarket News and Data brought to you by Benzinga APIs

Gorilla Technology's rapid growth draws scrutiny from The Bear Cave By Investing.com

Investing.com -- The Bear Cave, a research firm focused on short-selling, has raised cautionary flags about Gorilla Technology Group. The group, self-described as a "global solution provider in Security Intelligence, Network (LON:NETW) Intelligence, Business Intelligence, and Internet of Things technology," has seen its stock rise approximately 1,200% in the past six months. This surge is largely attributed to retail investor excitement following a series of recent partnerships and deals. Gorilla Technology, which was incorporated in the Cayman Islands and is headquartered in the U.K., has a significant majority of its workforce in Taiwan. The company also conducts business in various countries, including Egypt, Thailand, and Colombia. Despite the recent enthusiasm from retail investors, The Bear Cave suggests that this excitement may be premature. Gorilla Technology was founded in 2001 as a video analytics company but has since aggressively pivoted to AI-powered technology under its CEO and Chairman, Mr. Jay Chandan. Chandan led the SPAC that took Gorilla public in July 2022. Chandan, who spoke at Intel's 2024 AI summit in Bangkok, appears confident in his ability to grow Gorilla Technology. In a company press release from April 2024, he wrote, "In the face of doubters, critics and the perennial chorus of naysayers, my leadership has piloted Gorilla through uncharted waters, transforming a crescendo that rebukes the cynics. [...] The horizon ahead is brimming with potential, and under my stewardship, Gorilla will continue to conquer the critics, outpace the pessimists and blaze a trail of unprecedented achievements." Gorilla Technology positions itself at the intersection of smart cities, technology, blockchain, AI, and the Internet of Things. Despite this, the exact details of Gorilla's business and partnerships remain somewhat unclear. The company's February 2025 investor presentation gives some insight into the company's offerings, but specifics are limited.