U.S. Markets closed

AI Provider Veritone (VERI) Plummets After Citron Research Tweet

Madeleine Johnson
NantHealth, Inc. (NH) delivered earnings and revenue surprises of 23.08% and -10.83%, respectively, for the quarter ended September 2018. Do the numbers hold clues to what lies ahead for the stock?

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.

 

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.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
Twitter, Inc. (TWTR) : Free Stock Analysis Report
 
Veritone, Inc. (VERI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research