TaskUs (NASDAQ:TASK) stock is taking a beating on Thursday following a new short report from Spruce Point Capital.
Let’s dive into that short report below to see why it has TASK stock falling today!
- One of the biggest highlights from the report is CEO and co-founder Bryce Maddock’s education.
- Spruce Point Capital alleges that the company’s leader mistakes his own degrees and embellishes on his achievements.
- Included in that is TaskUs reportedly overstating the size of its workforce.
- Another claim in the report is revenue claim growths that the company was unable to realize.
- Spruce Point Capital believes that TaskUs is covering up financial strain.
- That includes revenue declines per employee.
- There are also concerns over its contracts with Meta’s (NASDAQ:FB) Facebook, which is one of the company’s major customers.
- Spruce Point Capital caps off its short report of TASK stock by warning of a potential 25% to 50% downside for the shares.
While Spruce Point Capital is calling out TASK stock, others see this as a buying opportunity. Baird analyst David Koning believes the falling price on today’s report represents a good entry point for new investors in the company.
TAKS stock is experiencing heavy trading today following the short report from Spruce Point Capital. As of this writing, nearly 8 million shares of the company’s stock have changed hands. That’s well above the company’s daily average trading volume of 1.3 million shares.
TASK stock is down 18.2% as of Thursday afternoon.
There’s more stock market news below for investors to sink their teeth into!
InvestorPlace offers daily coverage of the stock market and today is no different. The biggest news on Thursday includes what’s happening with shares of Luminar Technologies (NASDAQ:LAZR) stock, EHang (NASDAQ:EH) stock, and Netflix (NASDAQ:NFLX) stock. You can get up to speed on these topics at the following links!
More Thursday Stock Market News
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.