Why Shares of Twist Bioscience Fell 19.92% on Tuesday
A day after synthetic biology and genomics company Twist Bioscience (NASDAQ: TWST) saw its shares rise 16.1%, they did a U-turn, falling 19.92% on Tuesday. The stock nearly matched its 52-week low and is a long way from its 52-week high.
A report issued Tuesday by Scorpion Capital sent Twist's shares plummeting. The report called Twist, among other things, "a cash-burning inferno" and a "Ponzi-like scheme," adding that it "will end in bankruptcy."
Twist issued a response on Tuesday saying that it believes the short-seller report issued by Scorpion is highly misleading, with many distortions and inaccuracies. The company's 2022 fiscal full-year report is scheduled for Friday and a conference call will begin at 8 a.m. ET. Investors should keep in mind that short-sellers benefit when a stock they hold drops in price.
Source Fool.com
