On Wednesday, shares of artificial intelligence technology company Veritone Inc. VERI are plummeting after Citron Research spelled out a brutal future for the company on Twitter TWTR.
Before the tweet, the stock was trading at around $74.50 per share. Benzinga points out that it only took eight minutes for shares to fall to around $61, though Veritone is currently trading down about 16% to $55.60 per share.
$veri is not artificial intelligence, more like natural stupidity. Stock should trade right back to $20.— Citron Research (@CitronResearch) September 27, 2017
Veritone is fairly new to Wall Street, having priced its IPO at $15 a share and raising $37.5 million in the process in May. The company is one of the few pure-play AI options, and through its Veritone Platform, utilizes the power of AI-based cognitive computing to transform and analyze unstructured data for its clients.
In August, Barron’s tech trader Tiernan Ray published an in-depth discussion of Veritone’s AI strategy, and how it plans to take on much bigger competitors like Amazon AMZN and Alphabet GOOGL. This report sent shares of the company higher by more than 40%, and in the past month, the stock has climbed nearly 400%.
This massive selloff is likely another case of Wall Street overreaction, but Andrew Left’s Citron has infamously targeted companies like this through Twitter in the past. While Citron is a short-selling firm, and has made accurate calls in the past, it’s important to remember that the comment is just a tweet, albeit a ruthless one.
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