Core Viewpoint - The stock price of GCT.US surged by 30% following the release of its latest earnings report, despite a slowdown in revenue growth and expectations of stagnation due to US-China trade tensions [1][3][4]. Financial Performance - GCT.US reported a modest revenue increase of 3.8% in Q2, significantly down from a 65% growth in the previous year, and anticipates near-zero growth for the upcoming quarter [2][3][7]. - The company's revenue rose from $311 million to $323 million year-over-year, but the average annual spending per active buyer decreased by 13% [8][9]. - The gross margin fell from 24.6% to 23.9% due to tariff disruptions, yet net profit increased by 28.1% to $34.6 million, attributed to reduced administrative expenses [9]. Market Position and Valuation - Despite the recent stock price increase, GCT.US maintains a low price-to-earnings ratio of 9.4, compared to 25 for EDA Group and significantly higher ratios for Salesforce and Shopify [6]. - The company is seen as a potential "Chinese Easter egg" stock, indicating it is undervalued relative to its peers [5][6]. Strategic Developments - GCT.US is expanding its market presence by diversifying its supplier base beyond China to include Vietnam and Malaysia, and is accelerating its entry into the European market [6][8]. - The company has made strategic acquisitions, such as the $85 million purchase of Noble House Furnishings, which is expected to enhance its product offerings and operational efficiency [9]. Future Outlook - GCT.US's management views Europe as a key growth engine, with expectations that it could match the scale of its US operations in the coming years [8].