Veritone Freefalls As Citron's Andrew Left Targets $20 Endpoint

After striking 52-week highs Wednesday morning, Veritone Inc VERI plunged abruptly.

In a matter of eight minutes, the stock fell from $74.92 to $61.54. The selloff quickly caught momentum on a tweet from Citron Research’s Andrew Left appraising Veritone at $20.

$veri is not artificial intelligence, more like natural stupidity. Stock should trade right back to $20.

— Citron Research (@CitronResearch) September 27, 2017

Veritone investors have enjoyed a steep run since mid-August, when a Barron’s report catalyzed a massive runup from its 52-week low of $7.76. The company’s cloud-based artificial intelligence system was said to be well positioned among market competitors, particularly as management prioritized algorithm acquisitions.

The stock’s relative obscurity, large cohort of short sellers, small and volatility-prone market cap, and rare status as an AI pure play likely contributed to its rapid rise.

At time of publication, shares were trading at $53.60, down 18.6 percent on the day.

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