Gorilla Tech Stock Up For 4th Straight Session Following Positive Investor Update, Capital Strengthening: Retail Uber-bullish
By Stocktwits Inc | First Published Dec 19, 2024, 12:51 AM ISTGorilla Tech CEO Jay Chandan said the company’s focus remains on building long-term value, pursuing non-dilutive funding and leveraging the repurchase program to reflect its confidence in its future.
Gorilla Technology Group, Inc. ($GRRR) shares were on the move yet again on Wednesday after the company announced the completion of preferred share conversion. Retail cheered the development.
The U.K.-based company specializing in artificial intelligence (AI)-driven Industrial Internet of Things (IIOT) solutions said the conversion of the preferred shares is a milestone that will remove any lingering dilution concerns.
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CEO Jay Chandan said, “This milestone clears the path for a stronger, more transparent capital structure as we continue to execute on our growth strategy.”
“Our focus remains on building long-term value, pursuing non-dilutive funding and leveraging our repurchase program to reflect our confidence in Gorilla’s future,” he added.
The company also said as part of its broader strategy, it is focused on optimizing capital through the release of cash from real estate and other assets, enabling it to redeploy resources toward high-value opportunities.
Sharing key updates from its recent investor webinar, Gorilla Tech said on Monday that it will enter 2025 with a $93 million backlog, excluding additional projects and a Southeast Asia smart education contract it recently secured.
The company expects 2025 revenue of $90 million to $100 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 20% to 25%.
The company also said it is actively bidding for U.S.-based projects valued at over $70 million and other business opportunities. “With a growing pipeline of $2+ billion in opportunities spanning multiple years, Gorilla is positioned to deliver recurring revenue streams that underpin its long-term growth strategy,” it said.
The company went public through the Special Purpose Acquisition Company route and its shares began trading on the Nasdaq on July 14, 2022. From the post-listing high of $510, the stock has come off notably and currently trades at low-digit levels.
On Stocktwits, retail sentiment toward Gorilla Tech stock remained ‘extremely bullish’ (92/100), with the optimism accompanied by surging message volume.
A retail investor on the platform hinted at a potential short squeeze supporting the stock. The short percent of the outstanding shares was at a significant 7.41%, with the number of shares shorted increasing by 46% month-over-month at November's end.
Another said the stock has strong support around the $12 level.
At last check, the stock was up 19.67% to $12.26 on three times the average volume. The stock has gained about 90% for the year.
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