Perion Network Unfazed By Spruce Point Capital's Short Report: 'We Will Not Be Distracted'
Portfolio Pulse from Michael Cohen
Spruce Point Capital has raised concerns about Perion Network's financial practices, questioning the company's reporting and growth sustainability. The short seller's report highlights issues such as high revenue and EBITDA per employee, minimal capital expenditure, and opacity in revenue recognition disclosures. Spruce Point reiterated a 'Strong Sell' opinion on PERI, citing a 25%-40% potential downside risk.
May 23, 2023 | 1:38 pm
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Spruce Point Capital's report raises concerns about Perion Network's financial practices, questioning the company's reporting and growth sustainability. The short seller reiterated a 'Strong Sell' opinion on PERI, citing a 25%-40% potential downside risk.
The concerns raised by Spruce Point Capital about Perion Network's financial practices, including high revenue and EBITDA per employee, minimal capital expenditure, and opacity in revenue recognition disclosures, could negatively impact investor sentiment and lead to a decline in PERI's stock price in the short term. The short seller's 'Strong Sell' opinion and the cited potential downside risk of 25%-40% further support this negative outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100