Is AI tech company Veritone Inc., which is increasingly working with broadcast media companies, overheated on Wall Street?
One investment house says yes, resulting in a huge plunge in share value after an exceptional month of growth.
Veritone stock continued to fall back to Earth on Thursday, and shares have lost half their value since Wednesday’s Opening Bell.
VERI shares are now valued $36.88, falling $9.07 from Wednesday’s close. That said, Veritone reached upward of $73 in early Wednesday trade after a meteoric rise from $13.07 just one month ago — and $7.87 on Aug. 18.
Many factors can be attributed to Veritone’s big leap. But, why the sudden — and steep — reversal?
As reported by The Motley Fool, short-selling firm Citron Research took to Twitter to comment, “[Veritone] is not artificial intelligence, more like natural stupidity. Stock should trade right back to $20.”
Unfortunately, the Fool’s Steve Symington states, “Citron is well-known for writing scathing reports on the companies it targets, then benefiting from when their stock prices decline in response.”
Does Symington have an opinion on Veritone? He reiterated that he is “most comfortable watching Veritone’s progress from the sidelines, as I’d like at least one more quarter of financials to better gauge whether it’s worthy of a long-term investment.”
For a full look at today’s closing prices on Wall Street, please visit the Wall Street Report on the homepage of RBR.com.